Canadian Economy in Contraction in Q2


The gross domestic product (GDP) reports out of Canada this afternoon gave cause for concern among international investors today. Expectations were for a mild rise in growth for the second quarter of approximately 0.1%. The actual figure, instead, showed a 0.2% contraction for Q2.

The Canadian economy has been struggling with the regional woes brought about by debt solvency issues in the United States. Lingering growth concerns and a choppy commodities market have also held the Canadian dollar (CAD) in limbo when other economic reports revealed that it should have seen solid growth. This GDP data is disconcerting as we head into an emotional weekend pitched with tension as the US Congress concludes its debt negotiations ahead of the August 2 deadline.

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