economy is contracting, while Trudeau is getting closer to leaving

Bad news for Canada as the political crisis continues.

In November 2024, Canadian GDP contracted by 0.1% compared to the previous month, the first decline in 11 months, as lower output in extractive industries, transportation and warehousing and financial services offset growth in accommodation and food services and real estate and rental and leasing businesses, according to a flash estimate.

Turning to October, Canadian GDP expanded by 0.3%, revised up from the flash reading of a 0.1% increase and picking up from September's upwardly revised 0.2% increase.

Production growth in October was driven by mining, quarrying and oil and gas extraction (2.4%), thanks to increased oil sands mining and higher natural gas production, copper, nickel and lead.

Additionally, manufacturing production grew by 0.3%, with a 2.1% increase in the production of non-durable goods. In turn, the services sector recorded an expansion of 0.1%, thanks to the expansion of wholesale trade (0.5%) and real estate leasing (0.5%) which offset the decline in professional and scientific services (-0.2%).

Here is the relevant graph

Obviously the political crisis is also starting to weigh on the economy, while Prime Minister Justin Trudeau's position appears increasingly uncertain, even within his own Liberal Party: in fact it has been learned that the majority of Ontario's Liberal MPs are agreed that the prime minister should go.

On Saturday morning, 51 of the province's 75 Liberal MPs met virtually on a zoom call to discuss developments over the past week, from Chrystia Freeland's bombshell resignation as finance minister to growing calls for Justin Trudeau's resignation.

During the hour-long meeting, no member of Parliament – ​​including cabinet ministers – claimed on camera that the Prime Minister should fight in the next election as leader of the Liberals, according to seven sources present on the call, who spoke to the Star on condition of anonymity

Although many party representatives still defended Trudeau's temporary stay as prime minister, the majority still believed that he should not be the party's standard-bearer in the next election.