Monthly GDP grows but much of the growth paradoxically is in the oil, mining, quarrying and natural gas sector. Outside of the sector growth is very limited.

Stats Canada has released the July monthly growth figures. They show an overall growth rate of 0.3 %.positive for the second straight month. But it is odd that much of the growth occurred in the oil and gas, mining and quarrying sector which grew by 2.9 % largely because non conventional oil extraction grew by 9.1 %.In the U.S. oil production also grew by much more than was expected in July. If we put this sector aside and note particularly that in the coming months this sector will continue to be buffeted by falling prices and a global slump in the industry it is much less likely to contribute so positively to future growth . The growth was much more tepid in sectors like manufacturing   , retail trade , and negative in wholesale, and construction . The service sector which is also a very important large sector experienced some  growth but it was limited to certain sectors. Some service sectors showed negative growth including arts entertainment and recreation and information and cultural sectors. So the picture is mixed . If oil and gas shrink as is expected slow growth will likely continue.


About haroldchorneyeconomist

I am Professor of political economy at Concordia university in Montréal, Québec, Canada. I received my B.A.Hons (econ.&poli sci) from the University of Manitoba. I also completed my M.A. degree in economics there. Went on to spend two years at the London School of Economics as a Ph.D. student in economics and then completed my Ph.D. in political economy at the University of Toronto. Was named a John W.Dafoe fellow, a CMHC fellow and a Canada Council fellow. I also was named a Woodrow Wilson fellow in 1968 after completing my first class honours undergraduate degree. Worked as an economist in the area of education, labour economics and as the senior economist with the Manitoba Housing and Renewal Corporation for the Government of Manitoba from 1972 to 1978. I also have worked as an economic consultant for MDT socio-economic consultants and have been consulted on urban planning, health policy, linguistic duality and public sector finance questions by the governments of Manitoba, Saskatchewan,the cities of Regina and Saskatoon, Ontario and the Federal government of Canada. I have also been consulted by senior leaders of the British Labour party, MPs from the Progressive Conservative party, the Liberal party and the New Democrats on economic policy questions. Members of the Government of France under the Presidency of Francois Mitterand discussed my work on public sector deficits. I have also run for elected office at the municipal level. I first began to write about quantitative easing as a useful policy option during the early 1980s.
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1 Response to Monthly GDP grows but much of the growth paradoxically is in the oil, mining, quarrying and natural gas sector. Outside of the sector growth is very limited.

  1. circuit says:

    It appears the NDP’s commitment to balance the budget was a mistake. Balancing the budget when monetary policy cannot be expansionary is like walking a tight rope without a safety net.

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