Canada GDP


Canada: GDP contracts in August for the first time this year

November 3, 2014

In August, GDP contracted 0.1% over the previous month in seasonally-adjusted terms, which marked a deterioration from the flat growth recorded in July. Additionally, the reading came in below market expectations of zero growth and marked the first decline since December 2013. According to Statistics Canada, the result was driven by a decrease in mining and oil and gas extraction, as well as in manufacturing.

On an annual basis, GDP rose 2.2% in August, which was below July’s 2.5% increase. The overall trend stabilized with the annual average variation in GDP remaining at July’s 2.4% rise.

According to its October Monetary Policy Report, the Central Bank projects that the economy will grow 2.3% in 2014 and 2.4% in 2015. FocusEconomics Consensus Forecast panelists expect the economy to grow 2.3% in 2014, which is unchanged from last month’s estimate. For 2015, the panel expects the economy to expand 2.6%, which is also unchanged from the previous month’s Consensus.

Author: Angela Bouzanis, Senior Economist

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Canada GDP Chart

Canada Monthly GDP August 2014 0

Note: Month-on-month changes of seasonally-adjusted GDP and year-on-year variation in %.
Source: Statistics Canada (SC) and FocusEconomics calculations.

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