Recession talk in Canada, sparked by a 0.1% annualized decline in 1Q, was for naught based on April GDP data, says Douglas Porter, chief economist at BMO Capital Markets. GDP by industry rose 0.5% in April, and 1.1% on a 12-month basis, which marks the fastest pace of year-over-year growth in seven months. Porter says GDP is on track for 2%-plus annualized growth in 2Q, given early estimate for a 0.1% jump in May. The May estimate "will serve as a reminder that Canada is still growing slower than potential," Porter says. "Nevertheless, it's also clear that the small two-quarter dip in output was a false alarm on the recession watch." (paul.vieira@wsj.com; @paulvieira)
Dow Jones Newswires
April GDP Shows Canada Faced 'False Alarm' on Recession Watch — Market Talk
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Recession talk in Canada, sparked by a 0.1% annualized decline in 1Q, was for naught based on April GDP data, says Douglas Porter, chief economist at BMO Capital Markets. GDP by industry rose 0.5% in April, and 1.1% on a 12-month basis, which marks the fastest pace of year-over-year growth in seven…