Bank of Canada Warns USMCA Review Could Worsen Economic Challenges; Q1 GDP Shows Surprise Government Spending

According to the Bank of Canada's latest policy meeting notes, an unfavorable review of the United States-Mexico-Canada Agreement (USMCA) could compound economic difficulties. Q1 GDP data revealed the largest surprise came from government spending. The central bank acknowledged economic weakness and supply excess but stated the economy has not entered recession. The Bank reiterated it will discount oil price's short-term impact on inflation.
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