Canada's economy grew by 2.9 percent in the third quarter, the government statistical agency said Tuesday, blowing past forecasts that the economy would slow.

Higher exports and investments in non-residential structures in the July to September period, along with a boost in business inventories, were moderated by declines in housing and household spending, Statistics Canada said in a statement.

Desjardins analyst Royce Mendes noted that the "solid growth," despite nearly doubling expectations, came from mostly "external demand and volatile categories."

He noted also that a flash estimate of October showed "virtually no growth."

The data, he said, suggests the "economic momentum was stalling entering the fourth quarter."

Several economists have predicted Canada will go into a recession next year, while the government has estimated growth will slow from 3.9 percent in 2022 to 0.7 percent in 2023.