Economic growth already fading again

After a brief surge at the start of this year, GDP growth has already slowed markedly in recent months. (See Chart.) Unfortunately, the recent limited rebound in commodity prices won’t be enough to prevent a continued decline in investment. Non-energy exports still show little sign of benefitting from the weaker currency either. The economy is being supported by the strength of housing investment, but who knows how much longer that will last when housing already looks grotesquely over-valued in Toronto and Vancouver.