OTTAWA—The Canadian economy contracted in the second quarter, putting in its worst performance in seven years.
Statistics Canada says real gross domestic product fell at an annualized rate of 1.6 per cent in the three-month period, due in large part to the wildfire in Fort McMurray, Alta.
That’s the biggest quarterly decline since the second quarter of 2009 when Canada was in the midst of a global financial crisis.
Economists had expected a drop of 1.5 per cent in the second quarter, according to Thomson Reuters.
The drop in GDP came as exports fell by 4.5 per cent.
Energy exports fell 7.5 per cent while exports of motor vehicles and parts dropped 5.8 per cent due to lower exports of passenger cars and light trucks.
However, despite the pull back for the quarter as a whole, the Canadian economy returned to growth in June.
Statistics Canada says real GDP rose 0.6 per cent in June, boosted in part to non-conventional oil extraction as production in the Alberta oilsands started to resume following the shutdowns and evacuation caused by the wildfires.