Wednesday, September 2, 2015

Canada the world's fifth-largest oil producer fell into recession

As commodities prices gradually lower, Canada fell into a recession, report from Ottawa (AFP), Reeling from low oil prices, Canada fell into a recession in the first half of the year, government data confirmed Tuesday, putting Conservative Prime Minister Stephen Harper on the defensive in the run-up to October elections.

Economic recession is According to Statistics Canada, the economy contracted 0.5 percent in the second quarter after retreating 0.8 percent in the previous three months. The latest economic outlook described clearly

As global economy slow down, It is Canada's second recession in seven years and it is the only Group of Seven nation in economic retreat. Canada as The figures are the weakest since the 2008 global financial crisis.

Canada recession is related with China economy slow down, The latest economic data reflects fears about the health of the global economy as more gloomy evidence emerged of a slowdown in China, a main engine of growth worldwide. And the entire global economy crisis indicators

Prime minister Harper, whose Tories are trailing their rivals in opinion polls ahead of the October 19 election, blamed the overseas turmoil for Canada's woes, and emphasized an expansion in the economy in June.

He blamed the external factors, "We are living, once again, in a time of ongoing global economic instability," Harper said.

"Obviously there has been challenges, particularly in the energy and some commodity sectors because of falling prices. But the fact of the matter is over 80 percent of the Canadian economy has been growing."

As we knew that Canada, the world's fifth-largest oil producer, has been hit particularly hard by the halving of world oil prices from above $100 last year. In the second quarter, its mining, quarrying and oil and gas extraction sector posted a "notable decrease" for a second consecutive quarter, said the government statistical agency.

Meanwhile, Analysts said the damage however could be limited. "Despite the weak start to the year, there is good reason to believe that the worst is over," said TD economist Brian DePratto.

Source : AFP Ottawa

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