Quarterly growth in Canada likely resumed after data shows a sizable jump in GDP by industry in April, says Michael Davenport from Oxford Economics. GDP by industry rose 0.5% in April from the prior month, bringing relief to policymakers after two straight quarters of contraction. Davenport, however, says Canada's economy faces stiff headwinds, which includes US trade policy, stagnant population growth and the lingering effects of the global energy shock. Davenport, an economist, says economic output should pick up steam in 2H but warns Canada's economy could find itself on a permanently lower path should--as expected--the Trump administration opt not to renew USMCA. That would subject the trade pact to annual reviews, he says, extending the level of uncertainty hovering over Canada. (paul.vieira@wsj.com; @paulvieira)
Dow Jones Newswires
Positive Canada GDP Data Marred By Prospect of Permanent Trade Uncertainty — Market Talk
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Quarterly growth in Canada likely resumed after data shows a sizable jump in GDP by industry in April, says Michael Davenport from Oxford Economics. GDP by industry rose 0.5% in April from the prior month, bringing relief to policymakers after two straight quarters of contraction. Davenport, howeve…