In the second quarter, GDP increased 1.8% in seasonally adjusted annualized terms over the previous quarter. The result was unchanged from the first quarter's figure (previously reported: +1.9% quarter-on-quarter saar) and came in above market expectations of a 1.6% expansion. The stable growth in the second quarter mainly reflected how an acceleration in the domestic sector was offset by a deterioration in the external side of the economy. Private consumption accelerated from a 0.7% increase in the first quarter to a 1.1% rise in the second, while government consumption, on the other hand, declined 0.5% (Q1: -2.1% qoq saar). Meanwhile, business fixed investment decelerated from a 7.9% expansion in the first quarter to a 6.5% rise in the second. That said, GDP growth in the second quarter was positively affected by a build-up in inventories. Meanwhile, exports of goods and services decelerated notably, expanding only 0.8% in the second quarter (Q1: +4.0% qoq saar). Imports, on the other hand, accelerated from a 5.2% rise in the first quarter to a 6.4% expansion in the second. As a result, the contribution from net exports to overall economic growth deteriorated from minus 0.9 percentage points in the first quarter to minus 2.7 percentage points in the second.
Canadian economic growth unchanged in Q2
August 31, 2012
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Canada GDP Chart
Note: Quarter-on-quarter changes of seasonally adjusted annualized GDP and year-on-year variation in %.
Source: Statistics Canada (SC) and FocusEconomics Consensus Forecast.
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.