Canada's economy shrank in the third quarter of 2023, but updated data from Statistics Canada (StatsCan) suggests that the country is still avoiding a technical recession.StatsCan reported on Thursday that the real gross domestic product fell by 1.1% on an annualized basis in the third quarter of the year.StatsCan had previously stated that the economy had shrunk in the second quarter. However, the new revised numbers released on Thursday revealed that the real GDP actually grew by 1.4% on an annualized basis.If there had been two back-to-back decreases in real GDP, that would have met the criteria for a technical recession.Economists typically set a higher standard for declaring a recession because they look for indications of a more widespread economic slowdown.The weakening economy is happening simultaneously as high inflation and high interest rates make businesses and consumers reduce spending.
