Canada’s economy experienced its first contraction in nearly a year during July, signaling a slowdown in the country’s recovery from recession. Statistics Canada reported a 0.1% decline in gross domestic product (GDP) for the month, matching economists’ expectations. The downturn was driven by decreases in manufacturing, retail and wholesale trade, construction, and forestry, though the mining sector saw growth.
The federal agency noted that while some financial industries and the public sector also recorded gains, the overall economic activity fell in line with forecasts. This marks a shift from the strong rebound Canada had seen earlier in its recovery phase.