(The Financial Post – Eric Lam)
Canada’s economy jumped off the rails in the second quarter, posting the first quarterly decline since 2009 on significant weakness in exports and disruptions from natural disasters including wildfires in Alberta and the tsunami in Japan.
For the three months ended in June, Canada’s annualized GDP declined 0.4%, largely blamed on a 2.1% drop in export volume, Statistics Canada said in a report.
This is the first time the Canadian economy has posted a decline since a 3.7% drop in the second quarter of 2009. Annualized GDP for the first quarter has also been revised down to 3.6% from 3.9%.
By contrast, the U.S. economy still managed to grow 1.0% in the second quarter, despite being arguably in much worse shape than Canada.
Jim Flaherty, Federal Finance Minister, said the Canadian economy was still on track despite the poor second quarter results. Read more
Related: Canadian Raw Materials, Industrial Product Prices Down for Third Month (Globe & Mail)
Date: August 31, 2011