Analyzing Canada's Economic Contraction

This chapter explores the unexpected 1.6% contraction in Canadian GDP during Q2 and the underlying factors, including export challenges and stagnant business investments. It discusses the contrasting resilience of household consumption and the implications for the future economic landscape, including the Bank of Canada's decisions. The conversation further examines the country's population growth and labor market dynamics, highlighting the complexities of employment and economic policies amid rising unemployment and budget deficits.