Is Canada in a technical recession? StatCan to release latest GDP data – National | Globalnews.ca

Statistics Canada is set to release its gross domestic product reading for the third quarter Thursday morning.

The federal agency’s preliminary estimate suggested the economy shrank 0.1 per cent.

A decline in real GDP would mark the second consecutive quarterly contraction, meeting the definition of a technical recession.

However, economists tend to have a higher bar for calling a recession as they look for signs of a broader slowdown.

0:34
Canada’s economy flat in July, signs of growth in August: StatCan

The softening economy comes as high interest rates put a damper on business and consumer spending.

Forecasters anticipate that slowdown to continue into next year, likely leading to a rise in unemployment as well.