Although the headline growth rate is significantly stronger than forecasters had anticipated, the fall in consumer spending suggest higher interest rates are beginning to affect the economy more broadly.
Speaking at a conference hosted by Western University's Ivey Business School in Ottawa on Thursday, the former governor warned today's economy is more sensitive to interest rates than it was 10 years ago.
The federal government along with provincial governments have responded to high inflation with measures aimed at softening the blow on Canadians' finances.