Economic Growth Slowed Down

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September 5, 2010

Slow down by Colin Milligan

Canada’s economic growth fell in the second quarter of this year, according to a government report from earlier this week. If compared to the first quarter, the April to June growth rate slowed down quite noticeably, to 2 percent, which is in fact less than the majority of economists predicted.

From the first to second quarter of 2010, imports grew by 3.9 percent and exports rose by 1.5 percent. If trade is not taken into consideration, an increase of 0.9 percent was recorded by the final domestic demand of Canada in the second quarter. Consumer spending increased too, by 0.7 percent. Housing investment results were disappointing with only a.3 percent growth. Although this is a growth in the housing investment market, it is the slowest quarterly growth seen over the last five quarters.

It is a pretty weak growth, isn’t it? The fact that the housing sector belongs to those areas most negatively influencing the economic growth of the country, it is becoming frustrating. True, no sector is producing fantastic results, but housing and trade seem to be particularly unsuccessful lately.