Toronto (Canada), Aug 31 – Canada’s Gross Domestic Product (GDP) increased by 0.8% in the second quarter of the year, less than expected by economists, after gaining 0.1% in the month of June according to data published this Wednesday by the public body Statistics Canada (EC).
In May, the Canadian economy had stalled with zero growth. The increase from April to June marks the fourth consecutive quarter of expansion for the Canadian economy.
The growth of the economy in the second quarter was moderated by falls in investment in housing and household spending, as well as an increase in imports that exceeded exports.
Preliminary data also reveals that the Canadian economy contracted by 0.1% in July, which has been interpreted by economists as a quick reaction to the Bank of Canada’s policy of sharp interest rate hikes.
In July, the Canadian central bank surprised by raising rates by 1 point, which left the index at 2.5%, to contain the rise in inflation, which stood at 8.1% in June, its highest level since 1983.
The Canadian monetary authority said in a statement in July that inflation in Canada is higher and more persistent than it had anticipated and that it will be around 8% in the coming months.