Could Canada follow the U.S.’s economic decline? Here’s what experts say 

Canada's economy shows signs of slowing but growing while the United States has reported two quarters of decline. What's the difference between the North American neighbours?

Call it a tale of two economies: the latest figures from Statistics Canada on Friday show economic growth in the country slowed but likely avoided a decline through the first half of the year, just as the United States reported its second consecutive quarter of contraction a day earlier.

The economies of the two North American neighbours have long been entwined; as of late, the two countries have been rocked with decades-high inflation and rising interest rates as central banks push to dampen surging prices.

Both Canada and the U.S. have seen manufacturing output slow, dragging down real gross domestic product this past spring, and housing markets on both sides of the border have significantly cooled in response to rising rates.

Economists say the main difference lies in the pace of the two economic recoveries from the COVID-19 pandemic. But as recession rumblings get louder south of the border, Canada’s economic fate might well be tied to the U.S.

Consumer spending makes up a significant portion of both the Canadian and the U.S. economies, notes Beata Caranci, chief economist of TD Bank.

But the consumer side is an even larger chunk of the U.S. economy, she tells Global News, which makes slowdowns in demand even more apparent in their GDP results.

The U.S. also began its reopening cycle from the COVID-19 pandemic much sooner, as the country had a faster COVID-19 vaccine rollout and loosened restrictions earlier.

Carrie Freestone, economist with Royal Bank of Canada, says the Canadian economic recovery is still progressing this summer as consumer demand for air travel and dining at restaurants, for instance, remains strong.