Ottawa: Canada fell into recession in the first half of the year, posting its weakest results since the 2008 global financial crisis, government data confirmed yesterday.
The figures add to escalating fears about the health of the global economy, with world stock markets plunging farther yesterday as more gloomy evidence emerged of China’s economic slowdown —China has been a major engine of global growth.
The grim numbers were also bad news for Conservative Prime Minister Stephen Harper, just weeks before elections. The Canadian economy contracted 0.5 percent in the second quarter after retreating 0.8 percent in the previous three months, according to Statistics Canada.
By comparison, the US economy grew 3.7 percent in the first quarter.
Canada, the world’s fifth-largest oil producer, has been hit hard by the plunge in world oil prices from above $100 last year to about $52 now.
On the political campaign trail, where economic management has become a defining issue, the figures were expected to put Harper on the defensive, while bolstering opposition calls for a change of administration.
This is Canada’s second recession in six years and it is the only G7 nation in economic retreat.
Harper has insisted that, oil aside, the rest of the economy is doing well, although the figures point to broad declines.
AFP
