New numbers are in just yesterday for Canada's AUGUST GDP figures - CANADA'S ECONOMY IS SHOWING CLEAR SIGNS OF SLOWING DOWN after shrinking in June. July and August proved uneventful as value of goods and services remains unchanged between both months (see article)
This early indicator for August might be a hint of what's to come when September figures are released, which means there's a chance that Canada's economy has not grown meaningfully at all – since May 2023. This result is also surprising to economists, who had expected slight growth in the economy, but is now looking at a flat to downward trend in overall GDP.
What's even more important, is that only now, we're seeing the real impact of the aggressive rate hikes the BoC has slapped on since the Spring of 2022.
This, is probably good news for current homeowners, and prospective buyers - as a sign the BoC is done with rate hikes.. given the lag, "the recession chatter will ramp up quickly" - according to BMO Economist, Benjamin Reitzes. However, this doesn't necessarily mean the bank will start cutting rates - but with holding steady, this will lead to some stability in the housing market at least. If rates come down, asset prices will go up.
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