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Briefing

Canada: Consumption

Appears in: Advanced Economies, North America, Macroeconomy, Canada, Growth Outlook and Business Cycle, Labor Markets and Productivity

Critical Issues

Background:

Consumption has grown as a share of GDP as Canadian purchasing power climbed since the beginning of the decade. Meanwhile the narrowing of the manufacturing sector shifted the economy more to the services sector. Canadian consumers have been more resilient than those of the U.S. in part because they had lower debt levels, were less reliant on home equity withdrawal and Canadian banks continued to lend through the crisis.

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