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- Canada’s economy contracts 0.3 percent q-o-q in Q2
Canada’s economy contracts 0.3 percent q-o-q in Q2
Statistics
Canada announced on Tuesday that the country’s gross domestic product (GDP) grew
0.7 percent m-o-m in June after a revised 0.5 m-o-m decrease in May (originally
a decline of 0.3 percent m-o-m).
That
was in line with economists’ forecast for a growth of 0.7 percent m-o-m.
In
the second quarter of 2021, the Canadian GDP shrank 0.3 percent q-o-q,
following an unrevised 1.4 percent q-o-q increase in the first quarter. This marked
the first decline in four quarters.
According
to the report, the q-o-q decrease in GDP reflected the declines in exports
(-4.0 percent q-o-q) and home ownership transfer costs (-17.7 percent q-o-q)
that were partially offset by gains in investment in business inventories,
government final consumption expenditures, business investment in machinery and
equipment, and investment in new home construction and renovation.
Expressed
at an annualized rate, Canada’s GDP contracted 1.1 percent in the second
quarter after a revised 5.5 percent expansion in the previous quarter
(originally a 5.6 percent surge). This was much worse than economists’ forecast of a 2.5 percent advance.
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