The continuing slowdown in China’s increasingly important economy is adding to concerns about risks it could have to Canada’s own fragile recovery.
China reports its economy continued to decelerate to 9.1% growth in the third quarter, the worst performance in two years.
That’s not disastrous news, but analysts say the negative trend in the world’s second biggest economy should cause some concern Canada.
Not only is China now Canada’s second largest trading partner, but it is a key driver of global demand and prices for oil and metals that Canada exports in abundance.
CIBC economist Peter Buchanan says lower demand in China will likely trim demand for Canadian commodities as well as reduce the prices that exporters can charge.