Economic outlook for canada


The Economic outlook for Canada is not very bright. The first financial quarter was good with solid growth of 2.4%. This was due to an increase in exports, more than 10% increase in the construction sector and an increase in spending. However, the economic outlook for Canada took a hit in February and March due to a decrease in GDP. This was followed by natural disasters in Fort McMurray wildfire which led to closure of oil refineries and sand mining operations. The shutdown was temporary, but it cost the oil companies around 4 billion dollars in lost revenue which brought down the economy further. Another factor is the closing down of sand mining in the Yukon province. The sharp decrease in commodity prices is pulling down the mining sector, making mining less viable economically. The biggest source of disappointment in the second quarter has been the reduced energy sector investment that drove the economy in the first quarter. Canada’s economic outlook has been downgraded by all these factors.