In the second quarter, GDP declined 0.4% in seasonally adjusted annualized terms over the previous quarter. The result contrasted the first quarter's 3.6% increase and market expectations, which had seen GDP expanding 0.1%. In fact, it was the first contraction since Q2 2009, mainly due to widening trade gap. Domestic demand held firm as business fixed investment remained strong and grew 9.7% in the second quarter (Q1: +10.8% qoq saar). Private consumption expanded 1.6%, contrasting the 0.1% decline in the first quarter. The external sector proved weak in the second quarter through a combination of the faltering global recovery, the Japanese disasters and a strong Canadian dollar. Exports contracted 8.3% in the second quarter, contrasting the 7.7% expansion in the first. Simultaneously, imports added 10.0% in the second quarter (Q1: +9.5% saar). As a result, the contribution from net exports to overall economic growth deteriorated from minus 1.3 percentage points in the first quarter to minus 9.1 percentage points in the second. Meanwhile, GDP increased 0.2% in June over the previous month in seasonally adjusted terms, contrasting May's 0.3% contraction and coming in slightly below market expectations of a 0.3% rise. On an annual basis, GDP grew 2.0%, unchanged from the May reading. The annual average growth rate fell from 3.4% in May to 3.2% in June. The Central Bank estimates the economy to grow 2.8% in 2011, before decelerating to a 2.6% expansion in 2012.
Economy shrinks for the first time in two years on weak exports
August 31, 2011
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Canada Economic News
October 21, 2016
In September, seasonally-adjusted consumer prices increased 0.2% from the previous month, which contrasted the 0.1% decrease recorded in August and marked the highest print in three months.
October 19, 2016
At its 19 October policy meeting, the Bank of Canada (BoC) decided to maintain its target for the overnight rate at 0.50%, despite a weaker inflation and growth outlook.
October 11, 2016
The Teranet-National Bank National Composite House Price index rose 0.7% in September from the previous month, which followed the 1.5% increase in August.
October 8, 2016
Seasonally-adjusted annualized housing starts registered 220,600 units in September, according to the government-owned Canada Mortgage and Housing Corporation (CMHC).
October 7, 2016
The Ivey Purchasing Managers’ Index (PMI), sponsored by the Richard Ivey School of Business and the Purchasing Management Association of Canada, increased a seasonally-adjusted 6.1 points in September, rising from 52.3 in August to 58.4.