Canadian Economy Shrinks 1.6% as Trade War Crushes Exports (4)

The Canadian economy contracted for the first time in nearly two years as the trade war with the US pummeled exports and business investment.

Canada’s gross domestic product shrank at a 1.6% annualized pace in the second quarter, Statistics Canada reported Friday from Ottawa. That’s the biggest decline since the Covid-19 pandemic.

While roughly in line with the Bank of Canada’s forecasts, it’s a worse print than was expected in a Bloomberg survey of economists, which had forecast a 0.7% decline.

The loonie tumbled to a session low versus the US dollar after the report and traded at C$1.3761 ...