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View Full Version : Canada's GDP expanded by 4.6% in the year up to May, strongest pace since 2000



soulchaser
07-28-2017, 07:31 AM
Canada's GDP expanded by 4.6% in the year up to May, strongest pace since 2000

Oil and gas and manufacturing grew, while construction and real estate shrank

Canada's economy grew by 0.6 per cent in May, the seventh straight monthly gain.

The overall economy has grown by 4.6 per cent in the 12 months leading up to the end of May, Statistics Canada said. That's the biggest 12-month figure since 2000.

The strong showing blew past what economists were expecting, which was modest growth of 0.2 per cent for the month.

Goods-producing industries outpaced the service sector,*with the former expanding by 1.6 per cent, and the latter eking out a 0.2 per cent gain.

Oil and gas extraction grew by*7.6 per cent, while manufacturing grew by 1.1 per cent.

"The big surprise was a massive 13 per cent*snapback in ... oilsands, which alone accounted for half of the rise in GDP," Bank of Montreal economist Doug Porter said.

soulchaser
07-28-2017, 07:32 AM
MORE:
Oil output looks especially strong on an annualized basis, since in May of 2016, the Alberta oilsands were hit hard by a massive and devastating wildfire. It's also bouncing back from earlier this year, when a major Syncrude upgrader*was knocked offline by a fire.

Construction declined by 0.6 per cent,*as a strike in the last week of the month affected unionized construction workers in Quebec.*

Real estate, rental and leasing shrank by 0.2 per cent.

"There appears to be no holding back the Canadian economy, at least for now," TD Bank economist Brian DePratto said. "The robustness of the Canadian economy will likely allow the Bank of Canada to carry through with another interest rate increase this fall, completing the removal of the 2015 emergency stimulus."

Doug_M
07-28-2017, 07:40 AM
Oil schmoil. Keep it in the ground!

soulchaser
07-28-2017, 07:42 AM
Now, expect the Liberals and their media ass kissers to be all over this with praise for Trudeau's economic management.

However those who read past the headline will see that the Liberals had NOTHING to do with these numbers.

These numbers are annualized from May 2016 to May 2017. May 2016 had a huge chunk of the Oil Sands shut down to the Fort Mac wild fires. All that was back online and producing in May 2017. That increase in oil production accounted for half the May 2017 (0.3%) growth of 0.6% in GDP.

Construction, where the Liberals are allegedly spending BILLIONS of dollars on infrastructure fell 0.6%