Canada's GDP down 0.4 pct in Q2

Alsharq Trubune

Canada's real gross domestic product declined 0.4 percent in the second quarter of this year, following a 0.5 percent gain in the first quarter, said Statistics Canada on Friday.

The contraction was driven by significant declines in the export of goods, as well as decreased business investment in machinery and equipment, said the national statistical agency.

According to the agency, exports fell 7.5 percent. International exports of passenger cars and light trucks plummeted 24.7 percent in the second quarter as a consequence of tariffs imposed by the United States. Exports of industrial machinery, equipment and parts dropped 18.5 percent, while travel services also declined 11.1 percent. 

These declines were tempered by faster accumulations of business inventories, higher household spending and lower imports of goods, the agency added.