It's getting harder and harder to say we aren't in recession
Canada’s GDP Growth: A Closer Look at Q2 2024
Canada’s economy showed a 2.1% growth in GDP for Q2 2024, surpassing expectations. At first glance, these numbers seem promising, but a deeper analysis reveals things aren't as good as they seem.
A key detail is that government spending was responsible for 80% of the GDP increase. While this can provide a short-term boost, it raises questions about the sustainability of this growth. More concerning is the fact that GDP has declined for the fifth consecutive quarter and is down in seven of the last eight quarters.
Additionally, household spending per capita has decreased by 5%, highlighting ongoing economic strain on individuals. Given these persistent issues, it’s becoming increasingly difficult to argue that Canada isn’t experiencing a recession.
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