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ECONOMY IS SLOWING DOWN

Canada's economic growth slowed down in the fourth quarter of 1997, according to Statistics Canada. The country's gross domestic product increased .7% during the fourth quarter as consumer and business spending decreased. Growth in the first three quarters had been an annualized average of 4.6%. During the quarter, consumer outlays were only at 2.3%. Over the past three quarters, consumer outlays had expanded at annual rates of almost 5%. Business investment in new machinery and non-residential structures grew by nearly 14% during most of 1997, but dropped to 2% in the fourth quarter. Personal income grew by .2%, but after income taxes and other transfers to governments, real after-tax income per capita jumped only .1%. Canadians were able to maintain their spending last year only by saving less and going further in debt.

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