30 September 2013 23:59 [Source: ICIS news]
HOUSTON (ICIS)--Canada’s economy rebounded in July in part due to growth in potash mining activities, which helped drive a 1.4% gain in the mining and oil and gas extraction segment, Statistics Canada said on Monday.
According to the economic group, the mining, quarrying and oil and gas extraction sectors expanded 1.4% in July from the month prior and that specifically the mining and quarrying work alone accounted for a significant boost to the nation’s economy.
Statistics Canada said the country’s GDP grew at its quickest pace in two years for the month of July. It said total output rose to 0.6%, which was the largest gain since July 2011 and a sign that the economy is being to recover.
It is a pleasant reversal from the outlook predicted earlier in September for the province of Saskatchewan, as the Royal Bank of Canada (RBC) in a forecasting report said that the ongoing turmoil in the potash market would negatively impact the economy.
According to the RBC Economics Provincial Outlook, the downward revision of potash production forecasting has prompted a lowering of the projected GDP to 2.7% for the rest of this year and into 2014, versus earlier estimates of 2.9% for 2013 and 3.7% for 2014.
Through mid-2013, the region’s potash production had been steadily increasing at a pace of around 13%, namely because of contract business between the province’s fertilizer producers and their overseas customers. But in late July, the entire marketplace was thrown into disarray when Russian producer Uralkali broke away from its trading venture with Belaruskali.
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