Suryaa Business Desk: The economy of North American country Canada is facing a severe slowdown. While the country's economic growth rate has completely stagnated in the month of August,... The economy of North American country Canada is facing a severe slowdown. While the economic growth rate of the country has completely stagnated in the month of August, the latest official figures make it clear that the GDP decline is likely to be recorded in September as well. Uncertainty in global markets, a slowdown in the housing sector and falling consumer purchasing power have severely hampered Canada's economic growth.
Economists are worried as the impact of interest rate hike is evident on business sectors. According to a report released by Statistics Canada, economic growth made no headway in August as activity in the manufacturing, retail and service sectors slowed. There is a discussion that the country's economy is on the verge of recession as the preliminary forecasts for the September quarter are also negative. Volatility in international fuel prices and reduced demand from major trading partners are having a major impact on Canada's exports. Due to this, the domestic employment market is also facing pressure.
Market experts are analyzing that the central bank is likely to be more aggressive in cutting interest rates in its next policy review in the wake of a complete slowdown in economic growth. Industry groups are demanding that the government announce immediate stimulus measures to support businesses and control the fiscal deficit. At a time when global economic growth is slowing, these latest challenges facing Canada are casting blue shadows over the country's economic future.
