The expectation of Canada’s gross domestic product number (GDP) wasn’t great — analysts predicted 1.5% GDP growth in Q4; Farm Credit Canada was slightly more optimistic at 1.7%, but both expectations were off. The GDP growth for Q4 ended up being — wait for it — zero.
J.P. Gervais, chief economist for Farm Credit Canada (FCC), says that number is disappointing, yes, but also requires us to dig a little deeper in to what’s going on with the factors influencing GDP, including consumer spending and purchasing power, business optimisim and investments, and inflation and interest rates.
In the audio below from Wednesday’s episode of RealAg Radio, Gervais explains that the jury is still out on whether or not inflation beginning to ease is a sure thing. Employment rates are strong, the labour market is tight, and while supply chains are much improved, business confidence is not necessarily high enough to drive more investment.
What is agriculture’s role in building GDP? Are we holding our own? What does the year ahead look like for commodities? Hit play below or download the podcast to listen to the full conversation with Gervais here: