Statistics Canada reported that the domestic economy grew 0.5 per cent in the last quarter—an annualized rate of 2.1 per cent—better than forecasts from the Bank of Canada and private-sector economists. (The Logic)

Talking point: The headline number is good news but much of the growth was driven by government spending on higher wages. Household spending slowed, exports and residential construction declined, and gross domestic product per capita fell 0.1 per cent, the fifth quarter of shrinkage in a row. The Bank of Canada is to update its key interest rate next Wednesday; multiple big-bank economists predicted another cut of a quarter point as the central bank tries to keep the economy growing healthily.