The post Canadian economy contracts by 1.6% in the second quarter appeared on BitcoinEthereumNews.com. Canada’s real GDP contracted more than expected in Q2. USD/CAD trades in positive territory above 1.3770 after this data. Canada’s real Gross Domestic Product (GDP) declined by 0.4% on a quarterly basis in the second quarter, Statistics Canada reported on Friday. This print followed the 0.5% growth recorded in the first quarter. At an annual rate, Canada’s economy contracted by 1.6%, compared to the market expectation for a decline of 0.6%. Market reaction USD/CAD continues to stretch higher after this data and was last seen gaining 0.2% on the day at 1.3775. GDP FAQs A country’s Gross Domestic Product (GDP) measures the rate of growth of its economy over a given period of time, usually a quarter. The most reliable figures are those that compare GDP to the previous quarter e.g Q2 of 2023 vs Q1 of 2023, or to the same period in the previous year, e.g Q2 of 2023 vs Q2 of 2022. Annualized quarterly GDP figures extrapolate the growth rate of the quarter as if it were constant for the rest of the year. These can be misleading, however, if temporary shocks impact growth in one quarter but are unlikely to last all year – such as happened in the first quarter of 2020 at the outbreak of the covid pandemic, when growth plummeted. A higher GDP result is generally positive for a nation’s currency as it reflects a growing economy, which is more likely to produce goods and services that can be exported, as well as attracting higher foreign investment. By the same token, when GDP falls it is usually negative for the currency. When an economy grows people tend to spend more, which leads to inflation. The country’s central bank then has to put up interest rates to combat the inflation with the side effect… The post Canadian economy contracts by 1.6% in the second quarter appeared on BitcoinEthereumNews.com. Canada’s real GDP contracted more than expected in Q2. USD/CAD trades in positive territory above 1.3770 after this data. Canada’s real Gross Domestic Product (GDP) declined by 0.4% on a quarterly basis in the second quarter, Statistics Canada reported on Friday. This print followed the 0.5% growth recorded in the first quarter. At an annual rate, Canada’s economy contracted by 1.6%, compared to the market expectation for a decline of 0.6%. Market reaction USD/CAD continues to stretch higher after this data and was last seen gaining 0.2% on the day at 1.3775. GDP FAQs A country’s Gross Domestic Product (GDP) measures the rate of growth of its economy over a given period of time, usually a quarter. The most reliable figures are those that compare GDP to the previous quarter e.g Q2 of 2023 vs Q1 of 2023, or to the same period in the previous year, e.g Q2 of 2023 vs Q2 of 2022. Annualized quarterly GDP figures extrapolate the growth rate of the quarter as if it were constant for the rest of the year. These can be misleading, however, if temporary shocks impact growth in one quarter but are unlikely to last all year – such as happened in the first quarter of 2020 at the outbreak of the covid pandemic, when growth plummeted. A higher GDP result is generally positive for a nation’s currency as it reflects a growing economy, which is more likely to produce goods and services that can be exported, as well as attracting higher foreign investment. By the same token, when GDP falls it is usually negative for the currency. When an economy grows people tend to spend more, which leads to inflation. The country’s central bank then has to put up interest rates to combat the inflation with the side effect…