May 19, 2020

Canada's economy is on the rise for third month

Sudarshan Sitaula
2 min
Canada's economy is on the rise for third month

Good financial news for Canada: a new report from Statistics Canada indicates that the country’s gross domestic product (GDP) grew steadily for three straight months through June, July and August of 2015. That’s a good sign for a rebounding Canadian economy, and an indicator that the summer’s growth period may not be a fluke.

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The Statistics Canada report notes that the country experienced a 0.1 per cent increase GDP increase (inflation-adjusted) in August, driven in large part by growth in the good-producing and service industry sectors, particularly manufacturing and retail sales.

It is not as substantial as the 0.4 per cent growth in June or the 0.3 per cent growth in July, but is still growth nonetheless. According to an expert speaking with The Globe and Mail, August’s numbers demonstrate more realistic growth in the long term:

“After the strong rebound in June/July, it’s back to reality for the Canadian economy now. And that reality appears to be very modest growth,” said Canadian Imperial Bank of Commerce economist Andrew Grantham in a research note.

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But while manufacturing is coming back strong, other sectors have not been as fortunate—especially mining and exploration. Shell’s recent shuttering of its Alberta oil sands project is just one example of an overall industry downturn that has yet to recover. This issue could cause further economic decline and derail growth later on. But for now, experts are cautiously optimistic about Canada’s financial future.

[SOURCE: The Globe and Mail]

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