Canada's economic engine stalled in July as GDP contracted again
CBC
The total value of all the goods and services Canada produced shrank for the third time in four months in July, a sign that the COVID-19 pandemic continues to wreak havoc on the country's economy.
Statistics Canada reported Friday that Canada's gross domestic product (GDP) shrank by 0.1 per cent in July.
The accommodation and food services sector expanded by 12 per cent as more provinces reopened their economies after the third wave. A similar trend was seen in the hard-hit arts, entertainment and recreation sector, which expanded by eight per cent.
But those sources of strength weren't enough to offset weakness in other parts of the economy, including agriculture, which shrank by 5.5 per cent due to extreme heat in Western Canada hurting crop yields.
Wildfires in B.C. made a dent in the forestry and logging industry, which shrank by 3.9 per cent.
The utility sector shrank by 4.9 per cent while manufacturing contracted by 1.1 per cent and construction slumped by 0.9 per cent.
July's numbers mean Canada's economy is still two per cent smaller than it was 19 months ago before the pandemic started.
