Canada: GDP expands in August on energy sector
October 31, 2011
In August, GDP increased a seasonally adjusted 0.3% over the previous month, which was below July's 0.4% increase but above market expectations of a 0.2% rise. On an annual basis, GDP expanded 2.4% in August, at the same pace as in July. That said, the trend continues to point downwards, with the annual average growth rate inching down from 3.2% in July to 3.1% in August. The August print mainly reflected robust growth in the energy sector, which expanded 2.8% month-on-month. In the mining, oil and gas extraction category, output soared from 0.7% growth in July to 3.3% in August. Furthermore, finance, insurance and real estate services, which account for approximately 20% of GDP, expanded 0.6% in August (July: +0.1% mom). The Central Bank projects the economy to grow 2.1% this year and 1.9% in 2012.