Tuesday, December 1, 2009

Canada creeping out of recession.

Technically we are out of the recession now but growth is still quite weak even less than was predicted. However, stock markets seem to be doing relatively well in spite of the Dubai debacle. Note that Canada did not grow as much as the US although no doubt the job situation is better here.

Canada's economy edges higher in third quarter.

Canwest News ServiceNovember 30, 2009

OTTAWA - Canada's economic recession officially ended in the third quarter of this year, but with a weaker-than-expected increase.

Statistics Canada said Monday said gross domestic product grew 0.1 per cent in the quarter, following a 3.4 per cent contraction in the previous three- month period, which was the third quarterly decline in a row.

Most economists had forecast growth of one per cent for the July-through- September period.

Separately, the agency released the September GDP figure, which showed an increase of 0.4 per cent. Many economists had expected an advance of around 0.3 to 0.4 per cent for the month.

``The Canadian consumer has helped propel the economy into recovery,'' Diana Petramala, an economist with TD Securities, said in a note ahead of Monday's report. ``A red-hot real estate market has also helped support the economy by stimulating residential investment, related to a significant bounce-back in housing starts.''

However, she said, ``in the third quarter, it appears that businesses continued to service demand out of current stock, rather than ramping up production.''

The third-quarter GDP figures compares to 2.8 per cent growth seen during the same period in the United States - Canada's biggest trading partner.

Financial Post

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