Canadian Economy 'Double-Dip' Crashes In Q2 - Worst GDP Growth In 7 Years

Tyler Durden's picture

The first half of 2015 saw Canada informally enter 'recession' with two quarters of negative GDP but then, everything bounced back and policy shifts were 'proven' effective. However, that dead-canadian-cat-bounce is over as Q2 2016 GDP growth just slumped 1.6% - double-dipping to the worst since Q2 2009. The problem with this plunge is that oil prices actually had their best quarter in 7 years as the economy tanked.

 

 

As Bloomberg reports, Canada’s economy suffered its biggest contraction since the 2009 recession as wildfires in Alberta crimped oil production.

Gross domestic product fell at a 1.6 percent annualized pace in the second quarter, Statistics Canada said Wednesday in Ottawa. Economists expected a 1.5 percent decline, according to the median estimate of a Bloomberg survey with 24 responses.

 

Exports of goods and services plunged at a 16.7 percent annualized pace, and Statistics Canada said that excluding the damage from the wildfires output edged up. Nevertheless, export declines ranged beyond the oil industry: automobiles and metals both fell while shipments of consumer goods posted the largest drop since 2003.

 

Wednesday’s figures showed a good handoff to the third quarter, with monthly output rising 0.6 percent for June, faster than the 0.4 percent that economists predicted. It was the fastest gain since July 2013 and reversed a similar decline for May.

 

The quarterly figures signaled the main forces in the economy this year are still at work: weak business investment and strong consumer spending. Business gross fixed capital formation fell 0.5 percent, the sixth straight decline, while consumer spending rose 2.2 percent.

 

Government spending also bolstered the economy with a 4.2 percent increase, with some of it linked to Alberta relief efforts.

So Q2 was a disaster but Q3 hope is strong.

Bank of Canada Governor Stephen Poloz predicted in July that GDP would fall at a 1 percent annualized pace in the second quarter and rebound to a 3.5 percent gain in the third. The GDP report is one of the final indicators before Poloz’s Sept. 7 interest-rate decision. Economists predict no change in the key rate, which has been at 0.5 percent since July 2015, while swaps trading shows some investors are betting on a cut later this year.

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VinceFostersGhost's picture

 

Sorry you guys are having a hard time.

 

We'll lend you Obama if you want!

SomethingSomethingDarkSide's picture

Surely the pretty autistic boy is doing enough damage on his own?

BaBaBouy's picture

Contrived Numbers = Growth, Right ?

Thank Goodness US is Growing ...

The Real Tony's picture

At least Canada tells the truth about their GDP figures. America's GDP figures are just pulled out of thin air or out of a hat.

nope-1004's picture

Fires, snow, heatwave, wind..... what the hell did the economists do before we had weather?  Seems to me that this weather thingy is crimping our style.

 

BaBaBouy's picture

Nothing Like Gov't Statistics ~

Seasonally adjusted of course...

 

agstacks's picture

Well, it has been an unusually cool summer up there.  Everyone knows people do not shop when it is cooler than normal. 

Global Hunter's picture

its been one of the hottest and driest on record in Ontario...too hot to shop! 

The Real Tony's picture

It's the first time I ever remember Toronto hitting 98 degrees on 4 different days fahrenheit this summer.

 

Odegaard Falls's picture

It's been unusually hot, so we generally stay indoors when its' too hot, and with winter coming it will be too cold to go outside, so we will just not consume as we are fairweather consumers now. Climate change is really affecting our consumption, that's why we need to pay such exorbiant prices for our homes, we just stay in, cuz we can't spend, we house poor btichez!

Handful of Dust's picture

Where I live gas is too cheap to drive around and shop. Making matters worse, clothes are too cheap to buy right now.

What red-blooded American consumer wants to go out and spend almost nothing?!

robertocarlos's picture

Hotter than Hell on the Prairies. And good rain but only average crops.

Quantum Bunk's picture

Economics wise, Canadians are just the worst in the world.  Gold could go to $20,000 cad an oz yet a Canadian will say, why didnt you just buy real estate ?

Global Hunter's picture

most Canadians think our banks are safe and different and that the problems the USA has won't affect us because our government protects us. 

unrulian's picture

I Don't, and actually more and more people know someting Evil this way comes.... in Canada...and everywhere

Handful of Dust's picture

"There's never been a better time then now to buy a house (and fund your realtor's retuirement plan!)"

 

Canada housing crisis will be a long, drawn-out bottoming process

http://www.businessinsider.com/low-oil-prices-and-real-estate-market-are...

The Real Tony's picture

The first to fall will be the credit unions in British Columbia. Home Capital will of course be toast.

ejmoosa's picture

One step foward one step back...

That is NOT growth.  

Zoomorph's picture

The NDP and Liberals wanted to disconnect the economy from oil. Perhaps they're succeeding?

gladih8r's picture

Yeah, it looks like they are disconnecting the economy from everything, one piece at a time.  Only gay pride parades are encouraged by the Libs and NDP.....surely these will grow the economy somehow.

Yukon Cornholius's picture

Long rainbow fags, er, flags.

Clock Crasher's picture

Serious question

If they are first into recession/depression are they first out of recession/depression?

Winston Churchill's picture

I'm sure they can count on their politicians,to make a bad situation moar worserer.

Oh Canada........

Quantum Bunk's picture

No. They didn't purge any debt in 2008. So they need to catch down to everyone else from 08 still

back to basics's picture

The Canadian economy is in recession and has been so since about the middle of 2015. It's the wrong deflator they are using that's grossly understating real inflation that's giving them that + 1.6 growth, nothing else. 

Infield_Fly's picture
Infield_Fly (not verified) Aug 31, 2016 8:00 AM

Canada is a socialist/marxist shithole.

 

Canada's oil industry is being wiped out by same.

 

It's going to get a lot worse.

Global Hunter's picture

the cities and suburban areas are becoming shitholes I agree.  Those of us left in rural and small towns are the real Canadians and they're good people for the most part. 

Mr.Sono's picture

Not true, check out Detroid. Canada is just full of liberal pussies. That needs to change

Dominus Ludificatio's picture

Iam sure you really prefer gated communities and no go zones. Ask yourself why does everybody want to move there ,even with bad weather and  all.

Reichstag Fire Dept.'s picture

Canada is a prisoner of the United States now.

Without their purchases of Canadian oil & nat. gas our economy is hobbled. Furthermore, with US (and others) backed NGO's lobbying against energy pipelines to either of our coasts we will not be able to participate in the global oil trade! ...and this on the back of the USA changing their laws to become an exporter of oil and LNG! They have effectivly taken us out of the market altogether.

The Canadian economy is fucked and we've got nowhere to go but down from here. Trudeau Jr. will erase any and all productivity from the country.

Smegley Wanxalot's picture

No worries - Justin Trudeau has a great plan.
He will let in a million more "muslim engineers and scientists" to pollute Canada, and that will fix the problem.

deuce awesome's picture

Although Im not crazy about seeing mosques and women dressed like ninja's, I have to say that there have been a tonne of muslims here for a lot of years and there hasn't been any problems with the lot. Where I live there are none but in the east end of Toronto its like a different world.

Canadien françcais's picture

That is because things in Canad do no go like in the reste of the world. In Persia, Nigeria, Arabia, north Africa, Europe, islam has been a calamity. But not in Canada. Canada is different. There it will be OK. No reason to worry. But just in case, don't get too close to this eat of Toronto area. Oh, and it will grow, so you'll have to move further away. Never mind.

Bopper09's picture

And in 100 years, the muzzies will be saying the same thing about us.  Our gov't gave this country away in the late 80s, opening immigration up to unskilled labor.  And the 'multicultural' brainwashing here is beyond belief.  At least in the States there's enough of you that are willing to fight back.  We're lost, our people pat themselves on the back to throw our country away.  And when you say spending 40 billion a year on immigration, with costs exponentially rising...... obviously racist.  We do have a libertarian.ca party though, I suppose I can always dream.  Although I know it's already too late. 

Kirk2NCC1701's picture

Canada has no shortage of scientists and engineers. What they lack, are jobs for these people in the industrial sector.

As for the Muzzies, don't worry, they will be pouring in from Detroit. Because they don't want to live with Detroit blacks either. They'd rather live with white  Canucks, who have been raised to "Be Nice!", and who offer them much better Welfare programs. Plus, they'd rather breed with your naive, gullible white Canadian women. Who will be wearing Burkas or hajibs in no time. Oh, wait the Mountie chicks already do!

Oh Canada. How far you've fallen, since you let DC, NY and Tel Aviv rule you. At this point, things will only improve for you, if there's a WW3, which will take care of all the termites and rodents in your system.

wholy1's picture

Not to worry!  The new lib-turd PM will make it all "good" thru corp media BS.

directaction's picture

When I was just out of high school I thought Canada would be a great place to live. I drove up there a few times and loved it, hoping that some day I'd be able to scam Canadian citizenship either by marrying a Canadian or through a job.
But that was back in the 70s, back when Canada had actual Canadians living there. It's a Third World commie dump now, scumbags wandering around by the millions, and I'm glad I stayed south, in the Sonoran desert where it's still half-way normal. 

deuce awesome's picture

As mentioned above, its only the urban areas that are as you described. Rural parts are still great places to live.

Bopper09's picture

In the cities anyway, come to Sask if you don't mind cold winters and wind.  Keeps the rif raf out.

robertocarlos's picture

Do you have a sister? An East German once asked me that question.

deuce awesome's picture

When real estate finally hits its overdue correction; Canada will be in for a rough ride.

alangreedspank's picture

It will all be blamed on the Fort McMurray wild fires. Then again, if a wild fire makes your economy contract at the highest rate in 7 years, perhaps you've been slowing down more than was thought before...

TheVoicesInYourHead's picture

The Chinadastan economic "plan" has long been reliant on raping the earth of its rocks, trees, oil, and marine life.

Importing vast amounts of 3rd world immigrants was also the cornerstone of Trudeau's astute economic ponzi "strategy" incorporated in the 1970's and continued by successive "leaders". 

More recently, Canada "diversified" their economy by adding foreign money laundering via real estate to their master "sustainable growth" plan.

Sadly, Chinadastan is lost, on the road to becoming a banana republic.

 

bluskyes's picture

I don't mind money laundering as long as all can participate.

bluskyes's picture

Do the numbers take in account the falling canadian dollar? Perhaps Trudeau will out-do Chretien, and get down to the $0.50 mark.

Dominus Ludificatio's picture

The cdn dollar has been stabilizsed by the wall street banksters when Trudeau introduced the law that makes it a criminal act to boycot Israel.after his Bloomberg visit.It will only go down unless they are asking for more.

IridiumRebel's picture

MASTER OF UNIPERVERSE......How is Trudeau doing now!?!?!?!?

MASTER OF UNIVERSE's picture

Prime Minister Trudeau is in China making business deals & banking deals with the Communists so that the United States of America is fucked out of more Canadian business and money. Bottom line is that America is going to get less instead of moar, eh. And after we make Americans build a wall to keep Americans from getting out of the USSR we will cease trading and take all our banking to Asia instead of giving it to Wall Street scum like GS. De-Americanization is going smoothly and the snipers are stationed strategically to assassinate TrumpO if he sets foot on Canadian soil. Parliament is working on passing legislation that will bar TrumpO from entry to CANADA before the polls close in November.