Growth in the Canadian economy stalled in April, edging up just 0.1% — the same pace as the previous month — with wholesale and retail activity contributing only meager growth, while mining and construction output weakened. The figures were released this morning by Statistics Canada
Economists had forecast gross domestic product — the largest measure of economic health — to advance by 0.2% in April. Both April and March readings were the lowest since December 2013, when the economy declined by 0.4%, before bouncing back by 4% in January.
The Canadian dollar dropped 0.2 of a cent to 93.63 cents U.S. after the data was released.
Even so, the agency also said Monday that gross domestic product still managed year-over-year growth in April of 2.1% — the same year-over-year rate as the month earlier.
Economists had been expecting second-quarter annualized growth to reach about 2.4%, following only a 1.2% advance between January and March. However, with disappointing quarterly output in the United States — which Canada depends on for most of its trade activity — it's expected growth in this country could also ease.
That weakness will ensure the Bank of Canada will keep its benchmark interest rate — now at a near-record low of 1% —unchanged until well into 2015, as policymakers wait for stronger signs of a global recovery.
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