After several months of strong growth, the Canadian economy slowed to a more moderate level and analysts anticipate the trend to continue throughout the year.
Canada’s gross domestic product made no increase in May. This ends the seventh month of continual monthly growth, Statistics Canada reported.
This does not mean Canada’s healthy expansions are at a standstill. Rather, some of the business sectors were simply catching their breath in May, an official with CIBC World Market says.
At this rate Canada is in line to exceed four per cent growth in the second quarter, which is only somewhat lower then the six per cent the country experienced in the first three months of this year.
In contrast to Canadian economic growth, the American economy slowed considerably in the second quarter, growing at an annual rate of 1.1 per cent from April to June.
The Canadian economy appears to be more resilient than the U.S. economy, says a senior official with BMO Nesbitt Burns.
In comparing a year-over-year growth, Canada’s economy increased by 2.6 per cent in May. However, that is still weaker than the 0.8 per cent single-month growth recorded in April.
