Economy Shrinks by 0.2% in November, According to Statistics Canada

Statistics Canada reports a 0.2 percent decrease in real gross domestic product in November, marking the largest monthly contraction since December 2023.

However, the agency’s initial estimate for December indicates a 0.2 percent increase for the final month of the year.

An early estimate suggests a 1.8 percent annualized growth rate in the fourth quarter of 2024.

This economic update comes as the U.S. threatens to implement tariffs on Canadian goods as soon as Saturday.

In November, Statistics Canada states that goods-producing industries saw a 0.6 percent decline, with mining, quarrying, and oil and gas extraction dropping by 1.6 percent.

The utilities sector experienced a 3.6 percent decrease in November, primarily due to a 4.4 percent fall in electric power generation, transmission, and distribution.

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Services-producing industries saw a slight 0.1 percent decrease in November, with the transportation and warehousing sector dropping by 1.3 percent due to work stoppages, including a strike by 55,000 postal workers.

Statistics Canada also mentioned labor disputes at the Port of Montreal and Port of Vancouver during the month.

The agency highlighted growth in several leisure-related industries in November, such as accommodation and food services, arts, entertainment and recreation, and air transportation, coinciding with Taylor Swift’s Eras Tour arrival in Toronto.

Accommodation and food services experienced a 1.4 percent increase in November, the largest surge since January 2023, while arts, entertainment and recreation grew by 0.8 percent, and air transportation added 1.3 percent.