CIBC Research discusses its to today's Canada's Q2 GDP print.
"Canada's economy couldn't power through another tough Covid wave without losing some ground. The 1.2% annualized decline in GDP in Q2 came in contrast to expectations for an advance of 2.5%. A cooling off in home resales and a substantial decline in exports more than offset the gains in residential construction and business investment. Consumer spending fared only slightly better than the overall drop in GDP, with a modest advance during the quarter," CIBC notes.
"Those revisions are what wrongfooted economists' predictions. The third quarter also didn't get off to as hot a start as we had anticipated, with the July flash estimate only suggesting an increase of 0.4%, despite public health restrictions continuing to ease. Overall, it seems that the Canadian economy wasn't on as strong a footing as we had believed, and with the fourth wave now seemingly here, the economy faces another storm to navigate through," CIBC adds.