Canada economy growth tops July forecast [Video]

Canada’s gross domestic product expanded at a faster-than-expected 0.2 per cent rate in July, driven by growth in retail trade and public sectors, but the economy likely stalled in August, Statistics Canada data showed on Friday.

Analysts polled by Reuters forecasted GDP to rise 0.1 per cent in the month, after zero growth in June. The growth in July was despite the negative impact of wildfires on several industries, Statscan said.

Preliminary data for August, however, showed GDP was essentially unchanged as growth in oil and gas extraction and the public sector were offset by contraction in manufacturing as well as transportation and warehousing sectors.

That forecast keeps alive concerns about a weakening economy and puts the economy on track for 1 per cent annualized growth in the third quarter if GDP remains unchanged in September.

The Bank of Canada (BoC) forecasted a 2.8 per cent growth rate for the …