ZCZC
BCN-06
CANADA-ECONOMY-GROWTH
Canada sees strong Q2 growth just before elections, data shows
OTTAWA, Aug 31, 2019 (BSS/AFP) – Canada’s economy grew by a better-than-
expected 3.7 percent in the second quarter, official figures showed on
Friday, good news for Prime Minister Justin Trudeau less than two months
before elections.
The uptick — expressed at an annualized rate — came after a disappointing
end to 2018, when the economy slowed significantly, and a 0.4 percent rise
initially reported for the first three months of 2019.
Analysts had forecast Gross Domestic Product growth of 2.9 percent for the
second quarter.
In comparison, GDP in Canada’s neighbor and major trading partner the
United States rose 2.0 percent in the same period.
A 3.7 percent jump in exports fueled Canada’s expansion in the April-June
period, after shipments declined in the two previous quarters, Statistics
Canada said in a statement.
Energy products led the rise in exports.
“The contribution of trade to growth was the largest since 2011,” National
Bank of Canada analysts said.
On the other hand, they said, slumping business investment subtracted from
growth.
Royce Mendes, senior economist at CIBC Capital Markets, said “the Canadian
economy came roaring back following a couple of quarters of near stagnation.”
Neck-and-neck in opinion polls with his Conservative Party challenger
Andrew Scheer, Liberal Party leader Trudeau welcomed the growth figures.
“When you trust in Canadians and invest in them, this is what we can
achieve together: a strong and growing economy, over 1 million new jobs, and
a better future for our kids & grandkids,” Trudeau said on Twitter.
Scheer favors a lowering of public spending to reduce a fiscal deficit
forecast, according to the federal budget, to reach Can$19.8 billion (US$14.9
billion) for 2019-20.
BSS/AFP/SR/1730 HRS