Log in
Show password
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Dynamic quotes 
News: Latest News
Latest NewsCompaniesMarketsEconomy & ForexCommoditiesInterest RatesBusiness LeadersFinance Pro.CalendarSectors 
All NewsEconomyCurrencies & ForexEconomic EventsCryptocurrenciesCybersecurityPress Releases

Canadian economy likely grew 0.7% in June as COVID-19 measures were lifted

07/30/2021 | 10:18am EDT
coolFILE PHOTO: Phase 2 of the reopening from the coronavirus disease (COVID-19) restrictions in Toronto

OTTAWA (Reuters) -The Canadian economy most likely expanded by 0.7% in June as businesses reopened after shutdowns imposed to help fight the coronavirus pandemic, Statistics Canada said on Friday.

Statscan also said second-quarter annualized growth was set to be 2.5%, better than the Bank of Canada's July 14 forecast of 2.0%. Analysts predicted the third quarter would be stronger.

"With virus cases generally low across the country, the economy has some open road to recover even more ground this summer," Royce Mendes, senior economist with CIBC, said in a note.

Statscan said growth in retail trade and accommodation and food services was boosted by the easing of public health measures in many of Canada's 10 provinces in June.

There were also gains in manufacturing and mining, quarrying, and oil and gas extraction.

"The strong handover from June means that GDP should accelerate in the third quarter to around 6% annualized," said Stephen Brown, senior Canada economist at Capital Economics.

The Canadian dollar was trading nearly unchanged at 1.2441 to the greenback, or 80.38 U.S. cents.

The Bank of Canada, which says third-quarter annualized growth should be 7.3%, has identified possible new variants of COVID-19 as a potential threat.

"There remain challenges on the horizon, most notably in the form of variants of the virus which have slowed progress towards healing in other developed economies," Mendes said.

The economy shrank by 0.3% in May, matching a forecast from analysts polled by Reuters. Statscan revised April's decline to 0.5% from an initial 0.3% drop.

In May, 12 of 20 industrial sectors posted decreases, with services-producing industries down by 0.2% and goods-producing industries contracting by 0.4%.

(Additional reporting by Fergal Smith in Toronto;Editing by Alex Richardson, Jane Merriman and Paul Simao)

By David Ljunggren

© Reuters 2021
Latest news "Economy & Forex"
05:16pU.S. CDC Reports Total Novel Coronavirus Cases Of 41,915,285 As Of Yesterday Versus 41,754,903 In Previous Report On Sept 17
05:16pU.s. cdc reports total deaths of 670,565 due to coronavirus as of yesterday vs 668,442 in previous report on sept 17
05:15pU.s. cdc reports total novel coronavirus cases of 41,915,285 as of yesterday versus 41,754,903 in previous report on sept 17
05:14pU.s. cdc says 2.11 mln people received an additional covid-19 vaccine dose since august 13, 2021
05:13pU.s. cdc says 181,035,022 individuals have been fully vaccinated against covid-19 as of sept 18 versus 180,572,171 individuals as of sept 17
05:13pU.s. cdc says 211,489,242 individuals have received at least one dose of covid-19 vaccine as of sept 18 versus 211,097,597 individuals as of sept 17
05:12pU.s. cdc says delivered 466,569,635 doses of covid-19 vaccine as of sept 18 vs 464,315,725 doses delivered as of sept 17
05:11pU.s. cdc says administered 384,911,290 doses of covid-19 vaccine as of sept 18 versus 383,994,877 doses administered as of sept 17
05:00pHong Kong's first 'patriots-only' election kicks off
04:25pFacebook says WSJ allegations are 'mischaracterizations,' confer 'false motives'
Latest news "Economy & Forex"