Canada’s Economy Grows Less Than Expected
Dec 1st, 2010 by Mehrad Karimzadegan
The Canadian economy has grown less than what was expected by 0.3% in the third quarter down from 0.6% in the previous quarter. Speculation is widely existent at the moment as to why that is and analysts are trying to pinpoint the main causes as to how and why this has happened. One major possibility is that Canadians are spending much more on goods. Another idea is that the goods-producing industries outpace the service industries, which means more goods are being produced than being consumed. This is bizarre, because the two seem to contradict each other. Perhaps suppliers are continuing to push their resources towards increased production expecting the demand will be existent for their goods.
Over consumption is a bad habit in our nation momentarily, especially with the holiday frenzy fast approaching. But in order to regain economic and social stability and fully recover from the world-wide recession recently experienced, Canadians’ spending habits must become more conservative.
Manufacturers will continue to push consumers to spend more and this will never stop, but Canadians view on spending will need to change if the economy is expected to grow at sufficient rates.
Link to the article:
http://www.cbc.ca/money/story/2010/11/30/money-canada-gdp.html
