Close X
Sunday, November 24, 2024
ADVT 
National

Statistics Canada says gross domestic product grew by 0.3 per cent in July

Darpan News Desk IANS, 30 Sep, 2015 12:43 PM
    OTTAWA — Looking to shake off its slump, the Canadian economy grew for a second consecutive month in July, helped by a continuing rebound in the oilsands following slowdowns related to maintenance and forest fires.
     
    Statistics Canada said Wednesday that real gross domestic product grew 0.3 per cent in July, topping the 0.2 per cent growth economists had expected, according to a consensus forecast compiled by Thomson Reuters.
     
    However, the federal agency revised downward its result for June to show growth of 0.4 per cent compared with an initial reading of 0.5 per cent.
     
    BMO senior economist Benjamin Reitzes said in a report that GDP growth for the third quarter is tracking on a range of 2.5 to 3.0 per cent.
     
    "The back-to-back gains in GDP (in June and July) suggest that the economy rebounded firmly from the very weak first half of 2015," Reitzes said.
     
    Canada briefly fell into recession in the first half after five consecutive months of contraction produced two quarters of negative growth.
     
    Growth in June reversed the trend and many economists expect the economy to perform better in the second half of the year. However TD Bank economist Diana Petramala cautioned that while the third quarter was looking stronger than expected, questions remain about whether the pace will be sustained in the last three months of the year.
     
    Petramala noted the Pan Am Games in Toronto and the FIFA Women's World Cup likely boosted the economy in June and July.
     
    "The rebound in oil-related sectors has been actually quite strong as well, but oil prices took another leg down in July so some of that optimism might be temporary heading into August and September," she said.
     
    The economic report came in the midst of a federal election that has featured the economy has a key issue for all the parties.
     
    Conservative Finance Minister Joe Oliver touted his government's plan.
     
    "Canada is going to have solid strong growth in the second half of the year and experience positive growth for the full year," Oliver said.
     
    "We've been talking about how our low tax plan for jobs and growth is working, that we must stay the course, particularly in the context of global instability."
     
    But Unifor economist Jim Stanford said the rebound in the energy sector would not be repeated.
     
    "Claiming victory because GDP is growing again after a recession is a bit like commenting on how good it feels to stop beating your head against the wall," Stanford said.
     
    "And while the June and July GDP numbers are positive, in my view it is too early to conclusively declare the recession over."
     
    Driving the growth in July was a 9.1 per cent improvement in non-conventional oil extraction, which includes the Alberta oilsands, following a 7.0 per cent gain in June. The move follows maintenance shutdowns and production difficulties earlier this year. Conventional oil and gas extraction was up 0.8 per cent in July compared with June.
     
    Meanwhile, manufacturing output rose 0.6 per cent in July, while the finance and insurance sector rose 0.8 per cent for the month.
     
    Wholesale trade fell 0.4 per cent for July due to drops in farm products, petroleum products and miscellaneous products, while retail trade rose 0.2 per cent, helped by the auto sector and clothing and clothing accessories stores.
     
    The arts and entertainment sector fell 1.9 per cent, following a 6.8 per cent increase in June due to the FIFA Women's Soccer World Cup hosted by Canada.
     
    Construction slipped 0.1 per cent lower in July.

    MORE National ARTICLES

    Scottish Man Mistakes Plane Door For Toilet, Airline Staff Flush Him Out

    Scottish Man Mistakes Plane Door For Toilet, Airline Staff Flush Him Out
    James Gray said airline staff accused him of trying to open the door of the plane he was on while travelling at 30,000 feet. However, he claimed he only touched the handle after confusing it for the door to the toilet.

    Scottish Man Mistakes Plane Door For Toilet, Airline Staff Flush Him Out

    Stargazers Look Up For Double Treat But Clouds Are A Factor In Some Places

    Stargazers Look Up For Double Treat But Clouds Are A Factor In Some Places
    Stargazers in Canada were looking to catch sight of a two-for-one treat Sunday night, with the rare confluence of a total lunar eclipse with a so-called supermoon. Clouds got in the way for some.

    Stargazers Look Up For Double Treat But Clouds Are A Factor In Some Places

    One Charged After 3 Kids, Grandfather Die Following Car Crash North Of Toronto

    One Charged After 3 Kids, Grandfather Die Following Car Crash North Of Toronto
    A 29-year-old man faces a dozen impaired-driving charges after three young children and their grandfather died following a three-car crash north of Toronto.

    One Charged After 3 Kids, Grandfather Die Following Car Crash North Of Toronto

    Rachel Notley Stresses Importance Of Environment In Speech To Montreal Business Group

    Rachel Notley Stresses Importance Of Environment In Speech To Montreal Business Group
    Notley says the only way to achieving economic goals is by getting it right on the environment.

    Rachel Notley Stresses Importance Of Environment In Speech To Montreal Business Group

    Vancouver Mayor Gregor Robertson Launches Climate Pledge Program; 10 Local Businesses Sign On

    Mayor Gregor Robertson has finished his visit to New York for Climate Week NYC by launching the Vancouver Climate Pledge.

    Vancouver Mayor Gregor Robertson Launches Climate Pledge Program; 10 Local Businesses Sign On

    Argentinian Ballerina Released From Vancouver Hospital After Rollerblading Accident

    Argentinian Ballerina Released From Vancouver Hospital After Rollerblading Accident
    Twenty-year-old Lucila Munaretto says the experience has been a positive one overall given how much she has learned about patience and gratitude.

    Argentinian Ballerina Released From Vancouver Hospital After Rollerblading Accident