Canadian economy shrinks in second quarter

Japanese earthquake, Alberta wildfires blamed for contraction

Canada’s economy shrank last quarter, the first such drop since 2008-2009. The dip was marginal: real GDP fell 0.4 per cent from the first quarter. Most analysts blame one-off events, such the Japanese earthquake and wildfires in Alberta, for the slowdown, although continued turmoil in the U.S. and Europe likely played a large role. Finance Minister Jim Flaherty is in Toronto Wednesday for a funding announcement at Ryerson University, where he is expected to address the GDP question after the event. On Tuesday, at a Liberal Party summit, interim Liberal leader Bob Rae blasted the Conservatives’ handling of the economy, accusing the Tories of focusing too much on cuts and not enough on jobs.



Toronto Sun

[Photo by Caitlin Thompson/Flickr]

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