GDP (Q3 2011)

Canada's better than estimated third-quarter GDP, which grew by 3.5% annualised, was due to one-time stronger external trade figures. Final domestic demand, however, grew at a slower pace than we had estimated, with weakness in both household spending and business investment. More importantly, the worsening sovereign debt crisis in Europe has weakened global economic growth prospects. As such, we firmly doubt this pick-up in economic growth can be sustained in the coming quarters.