Canada’s economy flatlined in August, minor contraction seen in third quarter

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Canada’s economy flatlined in August, minor contraction seen in third quarter
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Statistics Canada said high interest rates, inflation, forest fires and drought conditions weighed on the economy in August

The Canadian economy flatlined in August, underperforming expectations, and it likely contracted slightly in the third quarter, Statistics Canada data showed on Tuesday.

The statistics agency said high interest rates, inflation, forest fires and drought conditions weighed on the economy in August. While likely to be revised, if those figures are confirmed next month, it would the second consecutive quarter of negative growth after an unexpected contraction in the three months ended June.

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