(MENAFN- Saudi Press Agency)
Ottawa, Ramadan 25, 1437, Jun 30, 2016, SPA -- The economy of Canada grew only 0.1 percent in April, Statistics Canada (Statscan) reported Thursday, indicating a weak second quarter following the devastation caused by major wildfires in the country''s oil-producing region.
The tiny April advance - the first in three months - matched economist expectations. Earlier this month, the Bank of Canada, citing the damage the fires did to the energy sector in Alberta, said growth likely would be flat or slightly negative in the second quarter before a big rebound in the third quarter.
However, the central-bank forecast now could be in doubt due to the economic fallout from Britain''s surprising vote last week to exit the European Union.
According to Statscan, manufacturing output in April rose 0.4 percent after two consecutive monthly decreases, pushed higher by growth in non-durable goods manufacturing. The utilities and public sectors also posted increases, but they largely were offset by a 7.3 percent drop in the output at oil-sands plants amid maintenance shutdowns.
Highlighting the effect of the wildfires that forced the evacuation in May of Fort McMurray, Alberta, Statscan reported separately that producer prices increased last month by their most in more than a year, as the fires caused supply disruptions that pushed up the cost of energy products.
The Bank of Canada says the damage from the fires will cut 1 to 1.25 percentage point from second-quarter growth, but has not yet forecast the consequences of Brexit.
--SPA
19:58 LOCAL TIME 16:58 GMT
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