Canada’s economy took a severe hit in this year’s second quarter, its worst performance in seven years.
Statistics Canada says on an annualized basis, the second quarter economy shrank by 1.6 per cent.
That’s the largest quarterly decline in gross domestic product since the second quarter of 2009, the period of the world global recession.
However, economists expect a rebound as Canada recovers from the effects of this spring’s devastating wildfires in northern Alberta.
Statistics Canada says April-to-June exports fell by 4.5 per cent, mainly because the Alberta fires near Fort McMurray forced a cutback in oilsands operations in May.
The agency says that, excluding the large drop in crude oil output, the country’s GDP would have increased by 0.1 per cent (0.4 per cent annualized) in the second quarter.
And economists are heartened by June statistics when real GDP rose by 0.6 per cent as oilsands production resumed.
As a result of the strong hand-off from June, the continuing rebound in oil production and the rebuilding of Fort McMurray, most analysts are predicting a return to growth in the third quarter.
The second quarter contraction came on the heels of an annualized growth of 2.5 per cent in the first quarter.
With CBC and CP files.
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