Canadian Economy Grinds to a Halt in the Fourth Quarter

Statistics Canada released its numbers for the Canadian economy in the fourth quarter of 2018, and it wasn’t pretty. Fourth quarter gross domestic product (GDP) growth came in at an abysmal 0.4%. Far lower than projections of 0.08% and 1.2%. And much worse than the 2.0% GDP growth reported in the third quarter of 2018. GDP growth for the first quarter of 2019 is expected to be as weak. This will have a material impact on Canadian stocks, the loonie, and what the Bank of Canada does with interest rates.

Canada’s 4th Quarter GDP Tumbled in 2018

The Canadian economy came to a screeching halt in the last quarter of 2018, expanding at just 0.1% in the fourth quarter, for an annualized pace of 0.4%. That’s the worst quarterly GDP growth in more than two years. That’s also a sharp drop from the annualized two percent gain in the third quarter.1

For 2018, Canada’s GDP advanced just 1.8%, far lower than the 3% expansion in 2017. The U.S. economy meanwhile expanded by 2.6% in the fourth quarter.

The Canadian economy actually shrank by 0.1% in December. It was the second consecutive month that GDP contracted and the third slide in four months. Consumer spending advanced at its slowest pace in almost four years, business investment dropped for a second straight quarter, and housing fell the most in a decade.

The only thing that kept the Canadian economy from the start of a recession was a build-up in inventories as businesses stockpiled goods.

An economic slowdown was expected in the fourth quarter, thanks to falling oil prices, but the economic picture painted by Ottawa is pretty bleak, with weakness spreading well beyond the energy sector.

On the plus side, wholesale and retail trade, transportation and warehousing, along with the finance and insurance sectors expanded in December. But major economic drivers like mining and oil and gas exploration, utilities, construction, and manufacturing experienced major slowdowns.

Manufacturing contracted by 0.7%, its fourth contraction in five months. Construction pulled back for a seventh consecutive month; this is the first time that has happened in almost 30 years.

That may not be a total surprise. Housing data has fallen ever since interest rates have been on the rise and Ottawa introduced a large number of stricter mortgage lending rules.

The outlook for the Canadian economy isn’t exactly rosy, with Statistics Canada revising its outlook for the first half of 2019 lower.

What does this data mean for Canadian investors? The loonie took a hit and an economic slowdown could stall growth on the TSX. The weak GDP numbers and outlook could also force the Bank of Canada to hold off raising interest rates. At least for a while.

Learn-To-Trade.com, Canada’s Leader in Stock Market Trading Courses

The weak GDP data and muted outlook for the Canadian economy isn’t any reason for investors to sit on the sidelines. The trading experts at Learn-To-Trade.com can teach you proven trading strategies that can help profit no matter what direction the markets are heading.

As Canada’s oldest and leading provider of stock market trading courses, the trading experts at Learn-To-Trade.com can help you trade more confidently and profit more consistently.

The instructors at Learn-To-Trade.com will teach you how to conduct a technical analysis, comprehensive fundamental analysis, read economic cycles, and spot market trends. You’ll also learn how to trade cryptocurrencies, about forex trading, foreign markets, commodities & futures trading, and stock index trading. We’ll also teach you about risk management and capital preservation.

At Learn-To-Trade.com we understand that investors have different needs. That’s why we provide a unique, Lifetime Membership that allows you to re-attend any part of the program as often as you’d like.

To learn more about Learn-To-Trade.com’s stock market trading course, contact us at 416-510-5560 or by e-mail at info@learn-to-trade.com.

Sources:

1. “Gross domestic product, income and expenditure, fourth quarter 2018”, Statistics Canada, March 1, 2019; https://www150.statcan.gc.ca/n1/daily-quotidien/190301/dq190301a-eng.htm

Photo Credit: iStock.com/zoom-zoom

The following two tabs change content below.
George Karpouzis is the co-founder of Learn-to-Trade and has been personally providing education and mentoring to over 3000 members since 1999. George has been trading in the stocks, options, futures and forex markets using technical analysis since 1986. With the help of advancements in trading technology the Learn To Trade program is now accessible worldwide. His background and passion for teaching brings an invaluable asset to our members. George is constantly striving to improve the program content and develop new strategic relationships for the benefit of the members. Add me to your G+

Testimonial 1

Don’t hesitate jump into it right now. You will be glad you did!

Susan C

Learn To Trade
4.0
2014-08-19T04:45:40-04:00

Susan C

Don’t hesitate jump into it right now. You will be glad you did!

Testimonials 2

The ongoing support has been the reason for my success

Patrick L

Learn To Trade
4.0
2014-08-19T04:46:33-04:00

Patrick L

The ongoing support has been the reason for my success

Testimonial 3

I wanted to let you know that I had taken your course in the fall of 2013. I took your advice and used demo accounts for the last quarter of 2013. I switched to real money trading account in the Near Year, when I finally felt comfortable. Following the lessons taught to me by you (don’t jump on a moving train, peaks and valleys, EMA..etc), I wanted to let you know that I have been successful beyond my own expectations. Thank you very much – taking the Learn-to-Trade course was, by far, the best decision I made in my business career.

Steven R

Learn To Trade
4.0
2014-08-20T02:56:18-04:00

Steven R

I wanted to let you know that I had taken your course in the fall of 2013. I took your advice and used demo accounts for the last quarter of 2013. I switched to real money trading account in the Near Year, when I finally felt comfortable. Following the lessons taught to me by you (don’t jump on a moving train, peaks and valleys, EMA..etc), I wanted to let you know that I have been successful beyond my own expectations. Thank you very much – taking the Learn-to-Trade course was, by far, the best decision I made in my business career.

Joseph L

The past options and forex tutorials taught by George were very helpful. I find these tutorials invaluable for a busy person like myself. I was able to keep myself up to date and on track ready to continue the learning process. Thanks for all the help and keep up the great work.

Joseph L

Learn To Trade
4.0
2014-08-20T10:36:37-04:00

Joseph L

The past options and forex tutorials taught by George were very helpful. I find these tutorials invaluable for a busy person like myself. I was able to keep myself up to date and on track ready to continue the learning process. Thanks for all the help and keep up the great work.

Harley S

The course is amazing. Where were you 30 years ago?

Harley S

Learn To Trade
5.0
2014-08-20T10:37:39-04:00

Harley S

The course is amazing. Where were you 30 years ago?

Partick M

I learned the basics I needed to trade successfully.

Partick M

Learn To Trade
4.0
2014-08-20T10:38:34-04:00

Partick M

I learned the basics I needed to trade successfully.

Iouri G

I like making money. I’m very happy, so far so good

Iouri G

Learn To Trade
4.0
2014-08-20T10:39:27-04:00

Iouri G

I like making money. I’m very happy, so far so good

Akos B

I learned things it would have taken me years to figure out

Akos B

Learn To Trade
5.0
2014-08-20T10:40:05-04:00

Akos B

I learned things it would have taken me years to figure out

Robert B

There is always someone ready to answer my questions.

Robert B

Learn To Trade
4.0
2014-08-20T10:40:59-04:00

Robert B

There is always someone ready to answer my questions.

Uldus V

I was impressed with the course’s professionalism and enthusiasm.

Uldus V

Learn To Trade
5.0
2014-08-20T10:41:40-04:00

Uldus V

I was impressed with the course’s professionalism and enthusiasm.

Dean K

I wish I knew about trading as a business years ago!

Dean K

Learn To Trade
4.0
2014-08-20T10:42:24-04:00

Dean K

I wish I knew about trading as a business years ago!

Peter P

Learn to Trade provided me with strategy, self-confidence and discipline

Peter P

Learn To Trade
4.0
2014-08-20T10:42:57-04:00

Peter P

Learn to Trade provided me with strategy, self-confidence and discipline

Shelley P

I took your course in 2008 and loved it. Since then I have been using what I learned at Learn-to-Trade to nicely supplement my pension income. Wanting a carefree type of trading, I have for the most part just sold options and made a monthly income which is a nice addition to my pension. I know I never would have made this kind of trading income without Learn-to-Trade. Thank you!

Shelley P

Learn To Trade
5.0
2014-08-20T10:34:39-04:00

Shelley P

I took your course in 2008 and loved it. Since then I have been using what I learned at Learn-to-Trade to nicely supplement my pension income. Wanting a carefree type of trading, I have for the most part just sold options and made a monthly income which is a nice addition to my pension. I know I never would have made this kind of trading income without Learn-to-Trade. Thank you!

Amir

Hi George,

I just wanted to thank you again for the amazing work on the tutorials especially Options trading.   Prior to joining, I had underestimated the quality of the trainings but they certainly far exceeded my expectations. Only I wish I’d found you 5-10 years ago!
Learn To Trade
5.0
2016-10-07T08:56:52-04:00
Hi George, I just wanted to thank you again for the amazing work on the tutorials especially Options trading.   Prior to joining, I had underestimated the quality of the trainings but they certainly far exceeded my expectations. Only I wish I’d found you 5-10 years ago!
4.4
14