Canada’s economy experienced its first contraction in nearly two years during the second quarter, driven by a sharp decline in exports and weakened business investment amid ongoing trade tensions with the United States. According to Statistics Canada, gross domestic product (GDP) fell at an annualized rate of 1.6% in the April-to-June period, marking the largest drop since the height of the pandemic. The contraction highlights growing vulnerabilities in the country’s external trade sector, particularly as U.S. tariff policies and shifting demand patterns disrupt key export flows. While domestic consumption remained relatively stable, the downturn in international sales and capital expenditures signaled a broader economic slowdown. The data underscores mounting pressure on policymakers to address external risks while supporting domestic resilience in the face of global economic uncertainty.
— news from Bloomberg.com
— News Original —
Canada GDP: Economy Shrinks in Second Quarter as Exports Crushed
The Canadian economy contracted for the first time in nearly two years as the trade war with the US pummeled exports and business investment. n nCanada’s gross domestic product shrank at a 1.6% annualized pace in the second quarter, Statistics Canada reported Friday from Ottawa. That’s the biggest decline since the Covid-19 pandemic.