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Canada’s Economy is Stronger Under the Hood
Canada’s economy is considerably stronger than the latest GDP figures suggest. If not for the effects of various distortions, the economy may have been tracking double the growth rate in Q2 compared to the official statistics. That would preserve growth at a rate above potential GDP growth and continue to push the economy into excess demand conditions. What are the Bank of Canada implications? It’s challenging to control for serial shocks that are hitting the Canadian economy dating back to late last year and more recently including the Federal civil servants strike in April, wildfires over the past couple of ... (full story)