Toronto (Canada), October 28 (EFE). – Canada’s gross domestic product (GDP) rose 0.1% in August, a growth similar to that of the previous two months, thanks to the service manufacturing sectors, according to data released this Friday by the public body Statistics Canada (EC).

EC data indicates that services manufacturing sectors grew by 0.3% in August, while goods manufacturing sectors fell by 0.3%.

Preliminary data indicate that the Canadian economy grew another 0.1% in September.

Retail activity increased by 1.2%. EC described the growth as “significant” as activity in this sector had fallen in July to levels similar to December 2021.

Also in August, gas station sales across the country grew 6.9% after three consecutive months of declines. The increase in sales coincided with a 9.6% drop in gasoline prices.

The EC data is in line with forecasts from the Bank of Canada, which warned this week that it expects economic growth to stagnate by the end of the year and into the first half of 2023 as the effects of high interest rates spread over the country spread throughout the Canadian economy.

The central bank estimates that GDP will grow by 3.4% this year, but will slow to less than 1% in 2023 and 2% in 2024.

Since early 2022, the Bank of Canada has been pursuing an aggressive policy of raising interest rates to control high inflation, which reached 8.1% in June.

On Wednesday, the central bank hiked rates for the sixth consecutive time this year, warning it will need further rate hikes in the coming months to bring inflation to around 2%.

This year, interest rates in Canada have fallen from 0.25% to 3.75%.

(c) EFE Agency