- Avery Shenfeld, chief economist at CIBC World Markets
Canada's economy grew more that expected in October, with mining, oil production as well as a rebound in educational services supporting the GDP growth. The Canadian economic output rose 0.3% month-on-month, after a 0.4% jump in the previous month, Statistics Canada said, beating economists' expectations for a modest increase of 0.1%. On an annual basis, the country's economy expanded 2.3% in October, following an upwardly revised 2.4% increase the previous month.
The oil and gas extraction sector expanded 1.5% in October, following the 3.6% increase in September. Mining and quarrying also increased by 1.5%, with advances in potash more than compensating drops in copper, nickel, lead and zinc. Signs of a sustained recovery in the US, the top destination for Canada's goods and services, is expected to bolster the Canadian economy as well. However, falling oil prices have led to downward revisions to the nation's future economic growth outlook, while the Bank of Canada highlighted weaker oil and other falling commodity prices as an emerging problem for Canada. According to the central bank, lower oil is estimated to slash about a third of a percentage point from Canada's GDP growth in 2015.
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