Canada | GDP up 0.2% in July

(Ottawa) Real gross domestic product (GDP) grew 0.2% in July in the country, according to Statistics Canada, after remaining essentially unchanged in June.


According to the federal agency, the increase is mainly explained by increases recorded in retail trade, the public sector, as well as the finance and insurance sector.

The retail trade sector notably advanced 1.0%, which represents its highest monthly growth rate since January 2023. Vehicle and automobile parts dealers contributed the most to growth in this sector, mainly due to new car sales.

The public sector aggregate, which includes educational services, health care, social assistance and public administration, rose 0.3% for a seventh month consecutive.

For its part, the finance and insurance sector recorded a second consecutive monthly increase, of around 0.5% in July.

The forest fires that raged across the country, however, had a negative impact on certain sectors.

The transportation and warehousing sector notably saw a decrease of 0.4%, down for a second consecutive month, largely due to the decline recorded in rail transportation.

Statistics Canada recalls that the forest fires which spread in Jasper National Park, in Alberta, led to the suspension of rail line traffic, which interrupted the transport of certain goods to Western Canada.

Several iron ore mines also paused their activities due to the fires that were active in Labrador and northern Quebec, which led to a reduction in extraction.

As for the construction sector, it declined for a second consecutive month. It fell 0.4% in July.

Preliminary estimates from Statistics Canada suggest that real GDP was essentially unchanged in August.


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