It’s a look in the rearview mirror, but new data from Statistics Canada show that Canada’s real gross domestic product (GDP) grew by 0.8% in the second quarter of 2022—the fourth quarter-over-quarter increase in a row. (Provincial level GDP data are not available on a quarterly basis.)

This works out to an annualized growth rate of 3.3%, which is below the 4.0% increase expected by the Bank of Canada.

Business investment and household spending contributed to the growth while a slowdown in the housing sector in the face of higher interest rates worked in the opposite direction.

Looking forward, growth is expected to slow over the second half of the year as elevated inflation and higher interest rates cut deeper. According to Statistics Canada, ”advance information indicates that real GDP edged down 0.1% in July.”

How low output will go remains to be seen, but there is risk of a mild national recession next year. Alberta, meanwhile, should be able to avoid a recession on the back of strong performance in the oil and gas sector.

Despite the early signs of a slowing economy, the Bank of Canada is unlikely to change course with regard to more interest rate increases given stubbornly high inflation.

Answer to the previous trivia question: Not including the use of wild plants, it is thought that wheat was first domesticated about 10,000 to 12,000 years ago.

Today’s trivia question: Canada’s gross domestic product (GDP) is calculated by Statistics Canada. Which agency calculates the GDP of the United States?