Canada’s Negative GDP in the 1Q Doesn’t Spell Disaster

Canada’s gross domestic product (GDP) shrank 0.1% in the first quarter (or 0.3% annualized), marking the country’s first decline since the second quarter of 2003. Declining exports are chiefly to blame, as spending power in the United States - Canada’s chief trading partner - has significantly contracted since the onset of the credit crunch and subprime mortgage crisis last summer. Exports - and in turn, the Canadian economy - started losing momentum in the second half of 2007. Cutbacks in manufacturing hurt exports, most notably motor vehicles, Statistics Canada reported today (Friday). The slowing economy gives the Bank of Canada more reason… SHARETHIS.addEntry({ title: "Canada’s Negative GDP in the 1Q Doesn’t Spell Disaster", url: "http://jutiagroup.com/2008/06/02/canada%e2%80%99s-negative-gdp-in-the-1q-doesn%e2%80%99t-spell-disaster/" });