Forex News

Canada economy contracts 11.5% in the second quarter

Canada economy contracts 11.5% in the second quarter

The Canadian economy posted a sharp contraction of 11.5 percent in the quarter ended June, following a 2.1 percent drop in the first quarter.

Data released on Friday by Statistics Canada showed a 6.5 percent contraction in June, pushing the second quarter’s drop to a record high of 11.5 percent and to an annualized rate of 38.7 percent.

There was a remarkable slowdown to all GDP components during the second quarter due to the closure measures imposed to control the Covid-19 pandemic.

In the U.S., the personal consumption expenditure price index rose 1 percent in the year ended July, which is still far below the 2 percent target for inflation.

As of 13:03 GMT, the U.S. dollar extended its drop versus its Canadian counterpart for a fourth straight session to 1.3086, where it hit its lowest level since January 22 earlier in the session.

Share Article