(Ottawa) According to Statistics Canada, real gross domestic product (GDP) in Canada fell 0.3% in the second quarter of 2021, after posting three consecutive quarterly increases.
A sharp decline in home sales activity and exports slowed gross domestic product in the second quarter.
In fact, ownership transfer costs, including all costs related to the transfer of a residential property from one owner to another, declined by 17.7% in Canada during the second three months of the year. In terms of exports, they fell 4% when imports were stable in the second quarter.
In contrast, business investment in inventories, government end-consumption spending, business investment in machinery and equipment, and investment in new housing construction and reconstruction have increased.
Statistics show that businesses accumulated $ 9.7 billion in reserves, compared to a $ 6.2 billion decline in the first quarter in Canada. Inventory build-up was the main contributor to GDP during the quarter.
Housing expenses rose 0.7% in the first quarter, compared to a 0.1% increase in the previous quarter. According to the Federal Agency, the slowdown reflects a decline in spending on goods, with 32 of the 48 categories of goods showing a decline.
Finally, there was a 2.2% increase in non-renewable income over a slight increase of 0.7% in household spending, which led to a growth in net household savings compared to the previous quarter. The savings rate reached 14.2%.