Canadian Economy Slows Down Amid Ongoing Trade War

The Canadian economy's third-quarter growth has slowed down to 0.2% in August, according to Statistics Canada's preliminary estimate.

This follows flat growth in July, with both goods-producing and services-producing sectors essentially unchanged.

Despite a strong second quarter with 3.3% annualized growth, the economy is now expected to face weaker growth due to the escalation of the trade war with the US.

The Bank of Canada governor Tiff Macklem warned that new levies could slash growth by roughly half to below 1% in the fourth quarter.