Canadian GDP crept downward 0.2% in February missing expectations for a 0.2% increase. The decline will likely hold Q1 growth well below the Bank of Canada’s 2.5% projection. It could force the central bank to hold off on expected interest rates hikes later this year. Most of the weakness occurred in mining and oil and gas extraction. Strong points included construction and real estate.
A key driver of the American economy, consumer spending, slowed last month for an increase of just 0.3%, following a 0.9% jump in February. While incomes were up 0.4% the March deceleration suggests Americans don’t feel their pay cheques are keeping pace. U.S. consumer spending was up 2.9% for Q1.
And in Europe, the news keeps getting worse in Spain. The country has joined Britain in a double-dip recession. The Eurozone’s 4th largest economy is struggling with massive public debt and a banking system that has been battered by a four year economic slump and a burst property bubble.
Tags: Commercial, Mortgages, Apartment, Multi-family, Financing, Lending, Canada, Vancouver, Calgary, Montreal, Toronto, Halifax, CMHC