Statistics Canada has released a new insights report, Recent Developments in the Canadian Economy: Fall 2022. The report was authored by Guy Gellatly and Carter McCormack who work with the Strategic Analysis, Publications and Training division, Analytical Studies and Modelling Branch at Statistics Canada. 

The report is based on data that are publicly available as of October 3, 2022 and provides an integrated summary of recent changes in output, consumer prices, employment and household finances. It highlights changes in the economic data during the first half of 2022 and into the summer months. The article also examines how economic conditions have changed as borrowing costs have risen. 

An overview of the report:

Economic activity rose during the first two quarters of 2022 as consumer spending and business stockpiling contributed to growth. Export volumes rebounded in the second quarter as import volumes rose at their fastest pace since early in the pandemic. Investment in housing contracted sharply in the second quarter, while business outlays on structures and machinery and equipment continued to advance. Labour productivity remained below pre-pandemic levels while improvements in the terms of trade bolstered real income growth.

Output and employment growth slowed during the spring months. Rising input costs and labour shortages continued to cloud the outlook as businesses and households adjust to higher borrowing costs. Headline consumer inflation reached a forty year high in June as inflationary pressures remained widespread. Household wealth posted a record decline in the second quarter as wealth inequality rose for the first time since the start of the pandemic. 

To read the full report, visit the Statistics Canada website. 

Source: Statistics Canada