Worst Plunge in Canada’s GDP since 2009

by Wolf Richter
Wolf Street

This time, you can’t blame the dollar or oil prices.

In the second quarter, Canada’s economic activity, as measured by inflation-adjusted GDP, fell 0.4% from the first quarter, or 1.6% annualized, “the largest decline in quarterly GDP since the second quarter of 2009,” as Statistics Canada put it in its data release.

It was a brutal reversal of the first quarter, when GDP had jumped an upwardly revised 2.5% annualized.

Canada’s economy is to a considerable extent dependent on its resource sector, particularly oil and gas. But since mid-February, prices of crude oil, a crucial export product, soared (with the US benchmark grade WTI up over 80%!).

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