Canada's GDP Contracts 0.4 Percent in Second Quarter
(MENAFN) Canada's economic output contracted sharply in the second quarter, marking a dramatic reversal from the previous three months' growth, Statistics Canada announced Friday.
The nation's real gross domestic product fell 0.4 percent between April and June, erasing gains from the first quarter's 0.5 percent expansion, the federal statistics office reported.
Massive drops in goods exports coupled with reduced corporate spending on machinery and equipment fueled the downturn, the national statistical agency stated.
Export activity plunged 7.5 percent during the quarter, according to the agency. U.S. tariff policies triggered a devastating 24.7 percent collapse in international shipments of passenger cars and light trucks throughout the second quarter. Industrial machinery, equipment and parts exports tumbled 18.5 percent, while travel services revenue fell 11.1 percent.
However, accelerated business inventory building, increased consumer expenditure, and reduced goods imports helped cushion the economic blow, the agency noted.
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