Call it a tale of two economies: the latest figures from Statistics Canada on Friday show economic growth in the country slowed but likely avoided a decline through the first half of the year, just as the United States reported its second consecutive quarter of contraction a day earlier.
The economies of the two North American neighbours have long been entwined; as of late, the two countries have been rocked with decades-high inflation and rising interest rates as central banks push to dampen surging prices.
Both Canada and the U.S. have seen manufacturing output slow, dragging down real gross domestic product this past spring, and housing markets on both sides of the border have significantly cooled in response to rising rates.
Economists say the main difference lies in the pace of the two economic recoveries from the COVID-19 pandemic. But as recession rumblings get louder south of the border, Canada’s economic fate might well be tied to the U.S.
