Canadian economy shrinks 1.6% in quarter - Breaking The News
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Canadian economy shrinks 1.6% in quarter

Alberta Gov / EPA / Chris Schwarz

Real gross domestic product (GDP) in Canada fell at an annualised rate of 1.6% in the second quarter, in a biggest quarterly decline since the same period in 2009. Exports fell 4.5%, with notable fall in energy exports of 7.5%, a significant source of income for the economy, following the huge wildfire around Fort McMurray, Alberta. On quarter-to-quarter scale, real GDP decreased 0.4% in the second quarter, after increasing 0.6% in the first quarter, Statistics Canada reported on Wednesday.

When it comes to monthly developments, real GDP rose 0.6% in June, erasing equivalent decline in May. Mining, quarrying and oil and gas extraction rose 3.6% in June, after four monthly declines. Oil production grew, with a particular 12% gain in non-conventional oil extraction. Manufacturing output grew 1.8% in June. Durable-goods manufacturing rose 2.4%, and non-durable goods output increased 1.0%.

"Despite the increase, the industry's output in June remained well below the average of the last three years," Statistics Canada noted in its report.

Household final consumption expenditure grew 0.5%, and wholesale trade increased 0.4% in June.

Image: Alberta Gov / EPA / Chris Schwarz

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