Canada: GDP remains unchanged in April
June 30, 2011
In April, GDP did not change over the previous month in seasonally adjusted terms, falling short of March's 0.3% increase but exceeding market expectations of a 0.1% decline. On an annual basis, GDP grew 2.8%, slightly up from a 2.7% increase observed in March. In contrast, the annual average growth rate eased a notch from the 3.6% observed in March to 3.5% in April after having moved sideways for the past five months. The monthly result was a consequence of no change in both goods-producing and service-providing industries. Within goods-producing industries, mining, oil and gas extraction posted the biggest increase, which was offset by a contraction in manufacturing. Manufacturing contracted amid a shortage in supplies following the tsunami in Japan. Within service-providing industries, an increase in retail trade was offset by a decline in wholesale trade. Finance, insurance and real estate services, which account for more than 20% of GDP, contracted in April. The Central Bank estimates the economy to grow 2.9%, before decelerating to expand 2.6% in 2012.