July 1, 2022

The Queens County Citizen

Complete Canadian News World

Canada’s GDP deals in the second quarter

Canada's GDP deals in the second quarter

(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%.