Following a contraction in the spring or second-quarter, Canada’s economy may have shrank at a rate of 0.1% in the summer or July-to-September period.

The Gross Domestic Product in August was barely ahead of July, and while final numbers for September are not yet available, early indications suggest this will continue for a third straight month or second consecutive quarter, meaning the country may have entered a ”technical recession.”

That has some economists saying whether Canada’s already in recession or not is less important than the fact the slow impacts of the central bank’s monetary policy are likely to depress economic activity moving forward.

”We expect the economy to more clearly enter a recession in 2024,” observes Tiago Figueiredo with Desjardins.

The Bank of Montreal’s Benjamin Reitzes says the GDP for August is ”one more crystal clear sign that the Bank of Canada should be done hiking” interest rates.