Economy Grows 1.7% in Q3

The Canadian economy expanded at an annualized rate of 1.7% in the third quarter of calendar 2017 as weaker exports weighed on growth.

Figures released Friday by Statistics Canada show the increase in real gross domestic product was driven by a 1% expansion in household spending.

But the agency also says exports fell on a quarter-over-quarter basis of 2.7%, which included a 3.4% decline in goods exports that followed three quarters of growth.

The statistical agency also made a downward revision to Canada's real GDP growth for the second quarter — dropping it to an annualized rate of 4.3%compared with its initial reading of 4.5%.

Economists had expected growth in the third quarter to come in at an annualized rate of 1.6%.

The third-quarter number was a little weaker than the Bank of Canada's October forecast, which predicted real GDP to ring in at 1.8 per cent.

The central bank is projecting real GDP to expand by 2.5% in the fourth quarter.

The latest GDP figure follows four-consecutive quarters of stronger growth