Friday, November 29, 2024

Real GDP per capita declines for sixth consecutive quarter, household savings rise

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OTTAWA — Statistics Canada says the economy grew at an annualized pace of one per cent during the third quarter, in line with economists’ expectations.

The agency’s gross domestic product report says higher household and government spending was partly offset by slower non-farm inventory accumulation, lower business capital investment and lower exports.

Real GDP per capita fell 0.4 per cent in the quarter, marking the sixth consecutive quarterly decline.

Despite the slower growth, however, household net savings in the third quarter increased as disposable income grew at double the rate of spending.

The report says high wages and lower interest rates helped the household savings rate hit a three-year peak in the third quarter, reaching 7.1 per cent.

By comparison, it was below three per cent at the end of 2019.

This report by The Canadian Press was first published Nov. 29, 2024.

Nojoud Al Mallees, The Canadian Press

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