OTTAWA — Statistics Canada says the economy contracted at an annualized rate of 1.1 per cent in the second quarter.
It was the first quarterly contraction recorded since the sharp drop in real gross domestic product in the second quarter of 2020 during first-wave lockdowns.
Statistics Canada says driving the drop in the second quarter of this year were declines in home resale activity and exports.
The agency says increased business and government spending, as well as new home construction and renovations weren’t enough to make up the shortfall.
The agency also says its initial estimate for July shows a contraction of 0.4 per cent for the month.
Statistics Canada says total economic activity in July was about two per cent below pre-pandemic levels recorded in February 2020.
© 2021 The Canadian Press