OTTAWA –

Statistics Canada is set to release its August gross domestic product report this morning.

The federal agency’s release will include a preliminary estimate for economic growth in September as well as the third quarter.

RBC says it expects the economy shrank in the third quarter, which would mark a second consecutive quarterly contraction.

Higher interest rates are weighing on economic growth as people and businesses pull back on spending.

The Bank of Canada’s most recent projections suggest the economy will remain weak for the rest of the year and into 2024.

The central bank is hoping this weakness will translate into lower inflation as price growth remains above its two per cent target.

This report by The Canadian Press was first published Oct. 31, 2023.