Canadian Economy Contracts in 2nd Quarter

Statistics Canada announced this morning that the Canadian economy contracted during the 2nd quarter by 0.1 percent. Earlier predictions were for zero growth.

The government agency blamed the decline on a 2.1 percent drop in export sales due most likely to weaker consumer demand in Canada’s largest market, the United States. Despite the declining growth, Canadian Finance Minister Jim Flaherty does not foresee the possibility of Canada’s economy falling back into recession.

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