Canada’s economy suffered its biggest quarterly slump since the 2009 recession as wildfires in Alberta put clamps on oil production.
Figures released Wednesday by Statistics Canada showed gross domestic product contracted at an annualized 1.6% rate in the second quarter, slightly better than economists’ forecasts for a decrease of 1.5%. It was the biggest annualized decline since the second quarter of 2009 when Canada was in a global credit crisis-induced recession.
The drop in exports and services was the main hit to growth in the second quarter, with the sector tumbling at an annualized 16.7%. The decrease in exports of goods was widespread across most categories, including motor vehicles and parts, and consumer goods.
There was also a decline in exports of energy products, including crude oil and crude bitumen, due to wildfires in May in the oil sands area of Fort McMurray, Alberta.
Still, there were signs that a pickup was already underway. The economy grew 0.6% in June, helped by a rise in non-conventional oil extraction as capacity returned following the fires.
