A bar chart shows the average rates of growth in Canada in five variables—gross domestic product (GDP), investment, consumption, government, and net trade. Each variable is depicted three ways—based on its average rate before the June 2024 rate cut, its historical average before the first rate cut in a cycle, and its historical average after the last rate cut in a cycle. While the historical average rate of growth in GDP before an initial rate cut has been about 2.6%, growth prior to the June 2024 rate cut was less than 1%. Following the last cut in a cycle, GDP growth has averaged about 3.5%. For investment, while the historical average rate of growth before an initial rate cut has been about 2.4%, growth prior to the June 2024 rate cut was about negative 1.9%. Following the last cut in a cycle, investment growth has averaged about 5.4%. For consumption, while the historical average rate of growth before an initial rate cut has been about 3%, growth prior to the June 2024 rate cut was about 1.5%. Following the last cut in a cycle, consumption growth has averaged about 3.6%. Growth in government spending and net trade buck the trend in overall GDP and investment and consumption: Over the long term, government spending and net trade have grown more quickly, on average, before an initial rate cut than after the final cut in a cycle. While the difference has been slight for government spending—it rose in the range of 1% to 1.5% in both scenarios—net trade has been about 0.5% prior to initial rate cuts and near negative 1% following final rate cuts. Prior to the June 2024 rate cut, government spending grew about 1.5%, and net trade rose roughly 3.4%.