OTTAWA, July 28 (Xinhua) — Canada’s real gross domestic product (GDP) decreased 0.2 percent in June following a 0.3 percent increase in May, according to Statistics Canada.
The decline in June was driven by the wholesale trade and manufacturing sectors, which outweighed the increases seen in May, the nation’s statistical agency reported.
However, the decrease was partially offset by growth in oil and gas extraction, as well as in the real estate and rental and leasing sector. This increase in oil and gas extraction helped mitigate the drop recorded in the previous month, which was a result of forest fires in Alberta.
The forest fires primarily impacted installations in western parts of the province, spanning from Edmonton to the Rocky Mountains’ Foothills in the Clearwater, Montney, and Duvernay formations. These factors played a significant role in the industry experiencing its largest monthly contraction since April 2020, leading to a sharp decline in both natural gas extraction and crude oil, according to the agency.
In May 2023, oil sands extraction saw a decrease of 1.6 percent, while pipeline transportation contracted by 2.1 percent. This contraction reflected a 3.8 percent decrease in natural gas transportation and a 0.4 percent decline in crude oil and other forms of pipeline transportation. Additionally, support activities for mining and oil and gas extraction declined by 4 percent, with all types of supporting activities experiencing a decrease in May.
Despite the decline in June, advance information suggests a 0.3 percent increase in real GDP by industry in the second quarter of 2023, as stated by Statistics Canada.
Credit: The Star : News Feed
