Canadian economy posts weakest back-to-back quarters of growth since 2015

However, overall growth was boosted by highest quarterly level of household spending in two years

Statistics Canada’s offices at Tunny’s Pasture in Ottawa are shown on Friday, March 8, 2019. (THE CANADIAN PRESS/Justin Tang)

Canada’s economy expanded at an annualized pace of just 0.4 per cent in the first three months of the year, giving the country its weakest back-to-back quarters of growth since 2015.

The real gross domestic product reading for the first quarter followed a revised growth number of just 0.3 per cent in the previous quarter, Statistics Canada said Friday in a new report.

It was the slowest two-quarter stretch of growth since an oil-price plunge caused the economy to shrink over the first half of 2015.

Economists had expected growth at an annualized rate of 0.7 per cent for the first quarter, according to Thomson Reuters Eikon.

The Statistics Canada report said downward pressure on first-quarter growth was driven by weakness in net trade as imports increased 1.9 per cent and export volumes dropped one per cent for their first quarterly decrease since 2017.

Canada also saw a substantial contraction of 9.5 per cent in its exports of farm and fishing products as well as a 2.8 per cent drop in crude-oil shipments.

On the positive side, the agency said overall economic growth was boosted by the highest quarterly level of household spending in two years, following broad-based increases that included strength in auto purchases and audio-visual equipment.

The economy also saw an 8.7 per cent increase in business investments on equipment and machinery — the biggest jolt in 23 years. The surge was fuelled in part by significant investments in aircraft and other transportation equipment, the report said.

Looking ahead, the report’s month-to-month reading for March — the final month of the first quarter — suggested the second quarter could be off to a stronger start. March posted a 0.5 per cent increase compared to a 0.2 per cent contraction in February.

The first-quarter reading Friday was slightly higher than the Bank of Canada’s prediction of 0.3 per cent.

READ MORE: Trudeau touts economic record at Liberal fundraiser in Vancouver

Andy Blatchford, The Canadian Press

Like us on Facebook and follow us on Twitter

Just Posted

Celebrating advancements in adventure tourism

Mike Wiegele receives doctor of laws degree from TRU

USW shows generosity despite tough times

Canfor employees present cheque for $500 to Clearwater Secondary School’s sports teams

UPDATE: Three wildfires discovered in Clearwater area

All new fires suspected to have been caused by lightning

Clearwater hosts fastball tournament

Home team takes first in both U12 and U 14 divisions

Young athletes recognized for skill and community service

Awards include Jack Koteles community service award, John Boscha award, and Nonie Miyazaki award

10 facts about Father’s Day

Did you know that the special day for dads was first celebrated in 1910?

Northern B.C. family remembers murdered Indigenous woman with memorial walk

Still no closure for Ramona Wilson’s family 25 years later

B.C. university to offer mentorship program for former youth in care

Students using the provincial tuition waiver program will soon be able to form a community at KPU

Cyclists competing in one of the toughest bike races on the planet pass through Fernie

Divide riders looking strong as they finish first leg of 4160 km race

You might not know these B.C. records are public

Hired a lawyer to file a civil claim? Those are published online

B.C. bus driver loses case to get job back after texting while driving full bus

An arbitator ruled that Tim Wesman’s phone usage was a “a reckless disregard for public safety”

B.C. Interior First Nation family ‘heartbroken’ over loss of young mom

RCMP have released no new information since the June 8, 2019 homicide

Revamped B.C. Lions set to battle veteran Winnipeg Blue Bombers

The Lions’ first test of the season will be a big one

No business case for Trans Mountain expansion, says former environment minister

Cabinet is expected to announce its decision on the expansion of the Alberta-to-B.C. pipeline by Tuesday

Most Read