Aided by Exports, Canada’s GDP Growth Soared in Q2
After managing only weak ‘real’ (i.e., after adjustment for inflation) gross domestic product (GDP) growth in the final quarter of last year and the first quarter of this year, Canada’s economy shifted into a higher gear during the latest three months.
From Statistics Canada, Q2 2019’s national output increase (annualized) north of the border was +3.7% compared with just +0.5% in Q1 2019 and +0.3% in Q4 2018.
The boost to growth in Q2 came mainly in foreign trade, as exports of goods and services were +13.4%, while imports retreated by -4.0%. Energy products led the export strength.
For the first time in two years, Canada’s quarter-to-quarter GDP change beat the U.S., +3.7% to +2.0%. For seven straight quarters, from Q3 2017 to Q1 2019 inclusive, the U.S. had the advantage over Canada.
In Canada, household spending in this year’s second quarter advanced by a tepid +0.5% annualized. Nevertheless, consumer spending as a share of GDP has crossed above the halfway point. In 2018, for the entire year, it was 56.6% of GDP and in Q1 and Q2 of this year, it has been 56.9% and 56.5% respectively.
