Canada records surprise GDP decline

Second-quarter figures show 0.3% contraction, which may affect taper and monetary policy


Statistics Canada reported on August 31 that Canadian real GDP fell by 0.3% in the second quarter of 2021, ending three straight quarters of growth.

The news comes about seven weeks after the Bank of Canada tapered down its asset purchase programme at its July monetary policy session.

The statistics authority said that declines in “home ownership transfer costs”, which fell 17.7%, and exports, which fell 4%, drove the decline. Growth in household spending slowed to 0.1%, and purchases of motor

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