The Canadian economy shrank by 0.4 per cent in October, after a 0.3 per cent decline in September, data from Statistics Canada showed Friday.
The Canadian economy also shed 0.2 per cent of its GDP in the first quarter, the data showed.
It’s the second straight quarter of declines.
“We are still struggling to get out of the second quarter where we were a little bit ahead in the third quarter and into the fourth quarter,” said Scott Grant, chief economist at Capital Economics.
“It’s still a long way to go.
We are still in a deep recession.”
The government is expecting GDP growth of 1.5 per cent for this year.
Economists polled by Reuters had forecast GDP growth at 1.6 per cent.
The government has been cutting its deficit, which was projected to be about 1.4 percentage points of gross domestic product (GDP) in 2019, to zero.
The deficit is also expected to fall to zero by 2021.
The decline in the economy came as the U.S. government slashed its deficit by more than a quarter, but the data shows Canada is still facing an even deeper recession.
The U.C.M.P., which represents U.A.E. countries, cut its forecast for 2019 by $500 billion from $1.5 trillion, with the U-shaped curve showing it had cut its growth forecast for 2020 by a third to 1.3 percentage points from the 1.9 percentage points it projected in 2021.
In the second half of the year, the Canadian economy was expected to grow by 1.7 per cent, with exports increasing by 1 per cent and imports falling by 0