31 August 2011 17:03 [Source: ICIS news]
Canadian GDP fell by an annualised 0.4% in the second quarter, after expanding 3.6% in the first quarter, Statistics Canada said.
The decline compares with 1.0% annualised second-quarter GDP growth in the
Canadian second-quarter exports declined 2.1% after two quarters of sequential gains.
Energy exports contributed the most to the second quarter decline.
Output in the manufacturing industries also declined. Motor vehicle sector output fell partly due to supply disruptions caused by
“The Canadian economy really did stall in the second quarter,” Andrew Gretzinger, economist at Toronto-based Manulife Asset Management, said.
One factor weighing on the Canadian economy is the continued strength of the Canadian dollar vis-a-vis the US dollar, he said.
The strong Canadian currency prompts consumers and others to buy in the
“Yes, it’s great for [Canadian consumers] to get all that cheap stuff from the US, but then, people are not working in Canada because they are not making it,” he said.
Gretzinger said he is not optimistic for the current third quarter, given the stock market turmoil and potential debt defaults in the euro zone.
“The third quarter probably will not be that great,” he said.
Gretzinger also said that
“Whatever happens in the
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