Canada: GDP growth slows in August
October 31, 2013
GDP increased a seasonally-adjusted 0.3% in August over the previous month. The increase was below July's two-year high of plus 0.6%, yet it beat market expectations of a 0.1% increase. According to Statistics Canada, mining and oil and gas extraction were the sectors with the greatest contribution to the monthly increase.
On an annual basis, GDP rose 2.0% in August, which was above the 1.5% expansion observed in July. The trend was unchanged, with annual average variation in GDP holding at July's 1.3% in August.
In its October Monetary Policy Report, the Central Bank cut its growth projections from 1.8% to 1.6% for 2013 and from 2.7% to 2.3% for 2014. FocusEconomics Consensus Forecast panelists expect the economy to grow 1.7% in 2013, which is down 0.1 percentage points from last month's estimate. For 2014, the panel expects the economy to expand 2.4%, which is also down 0.1 percentage points from last month's forecast.
Author: Carl Kelly, Economist