The economy shrank by 0.3 per cent in May, the second consecutive monthly decline, with slumps in mining, and oil and gas production leading the downturn, according to a report by Statistics Canada.
The agency says the shrinkage comes on the heels of a stagnant April. The last rise in the real gross domestic product was the 0.3 per cent increase recorded in March.
Mining, oil and gas extraction, manufacturing and construction all fell in May.
There was growth in the wholesale and retail trade, the public sector and utilities as well as the finance and insurance sector. Read More…
Is anyone surprised? Harper and his cronies have done little to help this economy get back on its feet.
RIM took a beating but i think its because they havent been staying competitive to Apple and Google in the manufacturing sector of quality smartphones. Recall that RIM was one of Canada’s shining global corporations.
Although its down its good to see the reail sector is on the up-and-up. Higher sales in retail means people are beginning to spend again which is a good sign. Old sectors like mining will continue to fall for the next decade. Nothing can be done there.
And i thought we were over the recession. Why the long faces? As long as it is not interferring with my pension i say enjoy life and have a cold one.
fruity, in no time Canada with its desire to shift right will have the same debilitating problems.
At least we arent as in bad shape as what is happening still in the US. Their unemployment rate is stilla t 9.5%. Yikes!
The Conservatives are conjuring up a plan to reduce taxes even further on the gas industry with the ill thought out idea that it will spur growth. We’ve seen this picture before.
Canada has an oil and gas sector? I thought all the tar sands profits went straight to the pockets of multinationals?
Historically our economy tends to shrink during the summer period. It rises again in the fall. It’s very cyclic and predictable. No worries.
@dave you raise an interesting idea. Canada, like other parts of the world, should be shifting its resources into green energy strategies to pump the economy. It’s going to happen anyway but i find many developed countries are way too slow in keeping up with what would work best.
This is fully expected. These sectors have been in a constant decline for decades. And they will not recover any time soon.
It’s time for Canada to look to other avenues for economy expansion.