Global Economic Intersection
Advertisement
  • Home
  • Economics
  • Finance
  • Politics
  • Investments
    • Invest in Amazon $250
  • Cryptocurrency
    • Best Bitcoin Accounts
    • Bitcoin Robot
      • Quantum AI
      • Bitcoin Era
      • Bitcoin Aussie System
      • Bitcoin Profit
      • Bitcoin Code
      • eKrona Cryptocurrency
      • Bitcoin Up
      • Bitcoin Prime
      • Yuan Pay Group
      • Immediate Profit
      • BitQH
      • Bitcoin Loophole
      • Crypto Boom
      • Bitcoin Treasure
      • Bitcoin Lucro
      • Bitcoin System
      • Oil Profit
      • The News Spy
      • Bitcoin Buyer
      • Bitcoin Inform
      • Immediate Edge
      • Bitcoin Evolution
      • Cryptohopper
      • Ethereum Trader
      • BitQL
      • Quantum Code
      • Bitcoin Revolution
      • British Trade Platform
      • British Bitcoin Profit
    • Bitcoin Reddit
    • Celebrities
      • Dr. Chris Brown Bitcoin
      • Teeka Tiwari Bitcoin
      • Russell Brand Bitcoin
      • Holly Willoughby Bitcoin
No Result
View All Result
  • Home
  • Economics
  • Finance
  • Politics
  • Investments
    • Invest in Amazon $250
  • Cryptocurrency
    • Best Bitcoin Accounts
    • Bitcoin Robot
      • Quantum AI
      • Bitcoin Era
      • Bitcoin Aussie System
      • Bitcoin Profit
      • Bitcoin Code
      • eKrona Cryptocurrency
      • Bitcoin Up
      • Bitcoin Prime
      • Yuan Pay Group
      • Immediate Profit
      • BitQH
      • Bitcoin Loophole
      • Crypto Boom
      • Bitcoin Treasure
      • Bitcoin Lucro
      • Bitcoin System
      • Oil Profit
      • The News Spy
      • Bitcoin Buyer
      • Bitcoin Inform
      • Immediate Edge
      • Bitcoin Evolution
      • Cryptohopper
      • Ethereum Trader
      • BitQL
      • Quantum Code
      • Bitcoin Revolution
      • British Trade Platform
      • British Bitcoin Profit
    • Bitcoin Reddit
    • Celebrities
      • Dr. Chris Brown Bitcoin
      • Teeka Tiwari Bitcoin
      • Russell Brand Bitcoin
      • Holly Willoughby Bitcoin
No Result
View All Result
Global Economic Intersection
No Result
View All Result

Canada’s Economy Reaccelerates

admin by admin
October 8, 2015
in Uncategorized
0
0
SHARES
4
VIEWS
Share on FacebookShare on Twitter

Investing Daily Article of the Week

by Ari Charney, Investing Daily

Given the extent of the oil shock, it’s probably too soon to say that Canada’s economy is fully on the mend. But most economists had expected the country’s gross domestic product (GDP) growth to reaccelerate during the latter part of the year after an atrocious first half.


And the latest economic data certainly suggest that Canada is finding its footing again. The otherwise lackluster second quarter ended on a strong note, with June GDP up a revised 0.4% month over month, exceeding the consensus forecast by two-tenths of a percentage point.

Now that Statistics Canada has reported the latest numbers for July, we can see that the country’s economy has once again surpassed economists’ expectations. July GDP grew 0.3% month over month, ahead of the consensus forecast by a tenth of a percentage point.

Two consecutive months of growth is a welcome relief after five straight months of declines.

Since Canada is in the midst of the rough and tumble of an election season, there was some debate over whether the first-half contraction was a “technical” recession.

Many economists quibbled with this characterization, since the declines in GDP weren’t accompanied by similar setbacks in other important parts of the economy, such as employment growth.

Regardless of what you call it, the economy’s retrenchment appears to have been relatively short-lived. As BMO Capital Markets economist Benjamin Reitzes told the Financial Post, “Most definitely, this is among the shortest and most mild (recessions) in Canadian history.”

Also a relief is the fact that the economy managed to produce such growth even after oil prices collapsed once more in July.

In fact, oil and gas production was one of the leading contributors to economic growth in July, up 4.4%, mainly due to a 9.1% gain in non-conventional oil production.

Part of the recovery in crude oil volumes appears to be due to a return to normal activity after production was hindered by maintenance activities and wildfires in April and May.

Economists with CIBC note that despite the drop in oil prices, industry estimates indicate that crude oil production could grow by as much as 200,000 barrels per day. With data showing just two-thirds of that threshold having been achieved, there could be more gains ahead.

Manufacturing output also grew during the month, up 0.6%, due to gains in production of transportation equipment and furniture, among other items.

We’ve been monitoring the manufacturing sector since the Bank of Canada sees its resurgence as key to transitioning away from the economy’s dependence on spending by debt-burdened consumers.

The declining exchange rate is expected to play a big role in this shift, and the lower Canadian dollar does appear to have given export volumes a boost recently. The loonie currently trades at around USD0.75, down nearly 16% from its trailing-year high.

Meanwhile, on a year-over-year basis, important economic contributors such as real estate and finance were up 3.1% and 6.9%, respectively.

So how do economists expect the second half to shape up? The consensus forecast is for GDP to grow by an average of slightly more than 2% during the third and fourth quarters, a sharp contrast to the decline posted for the first six months of the year.

Even so, with the oil and gas sector at least partially sidelined, the Canadian economy’s return to full capacity is projected to take longer than previously forecast.

The Bank of Canada estimates it would take annualized growth of at least 2.5% for the economy to be firing on all cylinders again, and it doesn’t expect GDP growth to surpass that number for a full year until 2017.

Fortunately, our investment strategy of selecting companies with sound balance sheets and the ability to deliver strong dividend growth should help us weather this difficult period.

In fact, we just restored one of our Dividend Champions to a “Buy,” thanks to a ramp-up in free cash flow that should sustain an enticing forward yield of 7.7%.

But only subscribers to Canadian Edge get to learn which stock that is.

Previous Post

Dispelling Three Myths on Economics in Germany

Next Post

Early Headlines: Glencore Big Risk For Banks, German Mfg And Exports Plunge, Deutsche Bank In Trouble, Chemistry Nobel, Oil Crash Hurts, California Going Renewable And More

Related Posts

Will The Fed Rate Hikes Crash The Stock Market?
Economics

Will The Fed Rate Hikes Crash The Stock Market?

by John Wanguba
March 31, 2023
How To Protect Your Portfolio Against Inflation And Interest Rate Hikes
Econ Intersect News

How To Protect Your Portfolio Against Inflation And Interest Rate Hikes

by John Wanguba
March 31, 2023
When Will The XRP versus SEC Case End?
Econ Intersect News

When Will The XRP versus SEC Case End?

by John Wanguba
March 29, 2023
Will The US Banking System Collapse?
Economics

Will The US Banking System Collapse?

by John Wanguba
March 29, 2023
Gold Versus Bitcoin, Which Is A Better Investment In 2023?
Econ Intersect News

Gold Versus Bitcoin, Which Is A Better Investment In 2023?

by John Wanguba
March 28, 2023
Next Post

Early Headlines: Glencore Big Risk For Banks, German Mfg And Exports Plunge, Deutsche Bank In Trouble, Chemistry Nobel, Oil Crash Hurts, California Going Renewable And More

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Browse by Category

  • Business
  • Econ Intersect News
  • Economics
  • Finance
  • Politics
  • Uncategorized

Browse by Tags

adoption altcoins bank banking banks Binance Bitcoin Bitcoin adoption Bitcoin market Bitcoin mining blockchain BTC business China crypto crypto adoption cryptocurrency crypto exchange crypto market crypto regulation decentralized finance DeFi Elon Musk ETH Ethereum Europe Federal Reserve FTX inflation investment market analysis Metaverse NFT nonfungible tokens oil market price analysis recession regulation Russia stock market technology Tesla the UK the US Twitter

Archives

  • March 2023
  • February 2023
  • January 2023
  • December 2022
  • November 2022
  • October 2022
  • September 2022
  • August 2022
  • July 2022
  • June 2022
  • May 2022
  • April 2022
  • March 2022
  • February 2022
  • January 2022
  • December 2021
  • November 2021
  • October 2021
  • September 2021
  • August 2021
  • July 2021
  • June 2021
  • May 2021
  • April 2021
  • March 2021
  • February 2021
  • January 2021
  • December 2020
  • November 2020
  • October 2020
  • September 2020
  • August 2020
  • July 2020
  • June 2020
  • May 2020
  • April 2020
  • March 2020
  • February 2020
  • January 2020
  • December 2019
  • November 2019
  • October 2019
  • September 2019
  • August 2019
  • July 2019
  • June 2019
  • May 2019
  • April 2019
  • March 2019
  • February 2019
  • January 2019
  • December 2018
  • November 2018
  • October 2018
  • September 2018
  • August 2018
  • July 2018
  • June 2018
  • May 2018
  • April 2018
  • March 2018
  • February 2018
  • January 2018
  • December 2017
  • November 2017
  • October 2017
  • September 2017
  • August 2017
  • July 2017
  • June 2017
  • May 2017
  • April 2017
  • March 2017
  • February 2017
  • January 2017
  • December 2016
  • November 2016
  • October 2016
  • September 2016
  • August 2016
  • July 2016
  • June 2016
  • May 2016
  • April 2016
  • March 2016
  • February 2016
  • January 2016
  • December 2015
  • November 2015
  • October 2015
  • September 2015
  • August 2015
  • July 2015
  • June 2015
  • May 2015
  • April 2015
  • March 2015
  • February 2015
  • January 2015
  • December 2014
  • November 2014
  • October 2014
  • September 2014
  • August 2014
  • July 2014
  • June 2014
  • May 2014
  • April 2014
  • March 2014
  • February 2014
  • January 2014
  • December 2013
  • November 2013
  • October 2013
  • September 2013
  • August 2013
  • July 2013
  • June 2013
  • May 2013
  • April 2013
  • March 2013
  • February 2013
  • January 2013
  • December 2012
  • November 2012
  • October 2012
  • September 2012
  • August 2012
  • July 2012
  • June 2012
  • May 2012
  • April 2012
  • March 2012
  • February 2012
  • January 2012
  • December 2011
  • November 2011
  • October 2011
  • September 2011
  • August 2011
  • July 2011
  • June 2011
  • May 2011
  • April 2011
  • March 2011
  • February 2011
  • January 2011
  • December 2010
  • August 2010
  • August 2009

Categories

  • Business
  • Econ Intersect News
  • Economics
  • Finance
  • Politics
  • Uncategorized
Global Economic Intersection

After nearly 11 years of 24/7/365 operation, Global Economic Intersection co-founders Steven Hansen and John Lounsbury are retiring. The new owner, a global media company in London, is in the process of completing the set-up of Global Economic Intersection files in their system and publishing platform. The official website ownership transfer took place on 24 August.

Categories

  • Business
  • Econ Intersect News
  • Economics
  • Finance
  • Politics
  • Uncategorized

Recent Posts

  • Will The Fed Rate Hikes Crash The Stock Market?
  • How To Protect Your Portfolio Against Inflation And Interest Rate Hikes
  • When Will The XRP versus SEC Case End?

© Copyright 2021 EconIntersect - Economic news, analysis and opinion.

No Result
View All Result
  • Home
  • Contact Us
  • Bitcoin Robot
    • Bitcoin Profit
    • Bitcoin Code
    • Quantum AI
    • eKrona Cryptocurrency
    • Bitcoin Up
    • Bitcoin Prime
    • Yuan Pay Group
    • Immediate Profit
    • BitIQ
    • Bitcoin Loophole
    • Crypto Boom
    • Bitcoin Era
    • Bitcoin Treasure
    • Bitcoin Lucro
    • Bitcoin System
    • Oil Profit
    • The News Spy
    • British Bitcoin Profit
    • Bitcoin Trader
  • Bitcoin Reddit

© Copyright 2021 EconIntersect - Economic news, analysis and opinion.

en English
ar Arabicbg Bulgarianda Danishnl Dutchen Englishfi Finnishfr Frenchde Germanel Greekit Italianja Japaneselv Latvianno Norwegianpl Polishpt Portuguesero Romanianes Spanishsv Swedish