Canada’s GDP Grow Slow Second Quarter

Canadian second-quarter growth is largely expected to have stalled after extraordinary strength in Q1, according to Japanese earthquake and tsunami The strong Canadian dollar and weak U.S. markets also hit exports.

Domestic demand is still strong y, the Retail sales grew by 0.7% in June from May, pushed up by higher auto sales. Business investment in machineryand equipment.

Besides The Japan earthquake second-quarter growth was hit by bad weather, maintenance shutdowns and a series of wildfires that helped curb energy production in May.

Canadian net exports will have 5% points from annualized growth, The Markets have largely priced in a flat GDP number so the Canadian dollar should not be affected much. The currency could be hit if the annualized second quarter figure is worse than the slight decline the Bank of Canada is already allowing for.