Canada’s economy is really admirable but things should not be taken for granted as there are possible risks waiting to pop up. In November 2016, Canada’s economy surprised everyone with a 0.4% growth rate despite the fact that there were major challenges in October making the country have an appreciable close of the presumed unimpressive year.
The increase in the economy by November mainly came from the manufacturing, housing and energy industry. The oil industry made a recovery from its previous decline with a 1.4% growth in November and also Non-conventional oil extraction increased 3.7% in the same period.
Although the housing industry had a shaky year, with home price fluctuating in different markets, it was able to grow by 1.1% in November but the figure is still lower than the growth made in the previous year.
This implies, Canada should hold on tight as there are speculations of a decline in the real estate industry and this will affect the economy as the housing industry has over the years become a great contributor towards the growth of the economy.
Since May 2012, the real estate and rental and leasing sector went through a decline in November 2016 and according to Statistic Canada, there was a 6.2% drop in housing activities as a result of several new laws implemented to address housing prices.
Furthermore, legal services were also affected by the drop in the real estate sector by 2.6%.
Bu the highest decline was felt by Vancouver’s housing market in 2016.
Toronto Dominion Bank senior economist Brian DePratto expressed despite the declines this was “one of the healthiest monthly GDP reports in recent times.”