Canada’s economy nudged ahead in July

This article was last updated on April 16, 2022

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Canadian economy was doing well in July, mainly due to the manufacturing and wholesale trade, indicating a potential third-quarter recovery after a shrinking in the previous quarter. GDP grew 0.3% in July, increased by 0.2% in June, says Statistics Canada.

Federal agency declared: “Manufacturing and, to a lesser extent, wholesale trade and transportation services were the main sources of growth.”

The 0.3% progress in July’s GDP was aligned with economists’ predictions.

According to Douglas Porter, deputy chief economist at BMO Capital Markets, “This report predates the deepening financial market turbulence and will likely show ‘what could have been’ for the economy, with the U.S. debt limit non-sense and the euro debt crisis.”

He added that the economy is still likely to rise roughly at a 2% annual rate in Q3, which will lead to the increase in GDP growth by 2.2% year-over-year “precisely what we expect growth to average for all of 2011.”

Earlier, the IMF relegated its viewpoint for Canada’s economic growth to 2.1% in 2011 and 1.9% in 2012, from its April predictions of 2.90% and 2.6%, respectively.

According to Emanuella Enenajor of CIBC World Markets, said July’s GDP report showed “a healthy gain — although recent indicators suggest some potential deceleration in the following months.”

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