Canada falls into recession with 5 percent contraction
While Australia sweats over whether the GDP has expanded or contracted by 0.2 percent, official figures from Canada show their economic growth has fallen by 5.4 percent for the March quarter, meaning the North American nation is now officially in a recession.
Statistics Canada confirmed the 5.4 percent contraction, which follows a 3.7 percent contract for the December quarter. While the 5.4 percent figure represented the worst result since 1991, it was less of a plunge than the 6.7 percent some economists had predicted.
The organisation also noted an 8.7 percent decline in exports in the March quarter due to falling demand for machinery and equipment.
“Lower spending in Canada and the United States, particularly business investment in plant and equipment, led to a sharp decline in Canada’s exports and imports,” noted Statistics Canada in a statement. “Both domestic and international demand continued to weaken.”
At the USA’s largest trading partner, Canada has followed its southern neighbour’s decline, which had previously recorded a 5.7 percent contraction for the first quarter.
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