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Canada Economy Unexpectedly Shrank in August on Oil Drop

Posted October 31, 2014

Under Economic Issues, International Trade Issues

(Greg Quinn – Bloomberg)

Canada’s gross domestic product shrank in August, an unexpected decline led by oil and gas extractors.

Output shrank 0.1 percent to an annualized C$1.63 trillion ($1.45 trillion), Statistics Canada said today in Ottawa, while the median forecast in a Bloomberg economist survey with 20 responses was for output to be little changed from July.

Oil and gas extraction declined by 2.5 percent to C$96.9 billion, the second straight decrease, leading the broader drop across goods-producing industries. Output among service producers rose 0.2 percent. Read more here.

Related: Canada’s Dollar Falls Most Since 2011 as Economy Shrinks (Bloomberg)