Recent economic data painted a mixed picture, with October’s GDP experiencing a slight contraction. However, Royal Bank of Canada (RBC) economists Claire Fan and Abbey Xu maintain a positive outlook, projecting a mild year-end expansion. While goods-producing sectors weakened, the service industry remained stable, with home resales rising 0.8% month over month. Early November data suggests a potential rebound, with increased hours worked and strong consumer spending. RBC anticipates a soft 0.5% annualized GDP increase for Q4.
For GTA mortgage borrowers, the key takeaway is that while growth is slowing, a deep downturn is not expected. This translates to a prolonged period of restrictive borrowing costs and a resilient consumer market. Despite challenges, the GTA real estate market is not anticipated to collapse. Read the full article on mpamag.com for more details on the economic factors influencing the GTA real estate landscape.
Read the original story here: https://www.mpamag.com/ca/mortgage-industry/industry-trends/canadian-growth-wobbles-but-rbc-sees-soft-landing-taking-shape/560819
