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Uncertainty around Key Regional Trade Deal Constraining Economic Growth
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Canada’s economic growth rate slowed in Q3 2017 to 1.7% from the high of 3.7% in Q2 2017 due to decline in housing investment and shrinking exports. The uncertainty around the North American Free Trade Agreement (NAFTA) has halted the work around motor vehicle shipping, which has impacted exports. Trade within North America is also expected to decline due to the uncertainty around NAFTA. An overall fall in manufacturing output and oil and gas output further caused the economy to decline. In Q3 2017, the United States’ economy grew at 2.3% primarily driven by increased private consumption and private investment. Private consumption increased due to strong retails sales which was fueled by reconstruction activities in hurricane hit areas. President Trump’s prioritization of domestic production is expected to increase job opportunities in the manufacturing sector and continue the downward trend of unemployment recorded at 4.3% in Q3 2017. The anticipated cuts in corporate tax by end of 2017 is expected to strengthen the current economic growth momentum. However, the withdrawal of the United States from trade agreements such as US trade agreement with South Korea (September 2017), Paris Climate Agreement (June 2017) renegotiation of NAFTA (August 2017) and stringent immigration policies has impacted US trade relation as well as its economic growth.Country Coverage – North America· Canada· The United StatesYear, Quarter and Month Coverage· Yearly Data: 2012 – 2021· Quarterly Data: Q1 2012 – Q3 2019· Monthly Data: January 2012 – September 2017
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