Canada's economy grows in August following five months of declines

Source: Dukascopy Bank SA
"Over the near term, the resource sector is still going to struggle a bit because decline in investments is not over in the resource sector. Oil prices remain low and in our view they will stay low. Also, the Canadian dollar depreciated significantly, which made imports more expensive."
- Krishen Rangasamy, senior economist at National Bank of Canada

Canada's economy expanded for a third month in August, rebounding from an oil shock that pulled the nation toward recession in the first half of this year. Canada's gross domestic product rose 0.1% in the reported month, following a 0.3% in July, according to Statistics Canada. Measured on an annual basis, the Canadian economy grew 0.9% in August, compared with a downwardly revised 0.7% growth a month earlier. The declines earlier in the year were primarily driven by the energy sector, which was undermined badly by the oil price plunge, first in exploration and then in extraction. The volume of oil and gas output increased 0.3% in August, following gains of 2.6% and 3.9% in June and July respectively. It sat 6.5% higher than a year earlier but was still below February's peak.

Economists predict that if September GDP numbers do not disappoint, the economy will be on track to reach the Bank of Canada's projected 2.5% growth in the third quarter. At its recent meeting, the central bank kept interest rates on hold at 0.5%, referring to a persistent slack in the economy, and revised its third quarter projection from 1.5% to 2.5%.


© Dukascopy Bank SA

Actual Topics

Subscribe to "Fundamental Analysis" feed

Subscribe
To learn more about Dukascopy Bank CFD / Forex trading platform, SWFX and other trading related information,
please call us or make callback request.
For further information regarding potential cooperation,
please call us or make callback request.
To learn more about Dukascopy Bank Binary Options / Forex trading platform, SWFX and other trading related information,
please call us or make callback request.
To learn more about Dukascopy Bank CFD / Forex trading platform, SWFX and other trading related information,
please call us or make callback request.
To learn more about Crypto Trading / CFD / Forex trading platform, SWFX and other trading related information,
please call us or make callback request.
To learn more about Business Introducer and other trading related information,
please call us or make callback request.
For further information regarding potential cooperation,
please call us or make callback request.