Brakes on for the Canadian economy, says EFC Indicator
Mississauga, ON -- The EFC Indicator, Electro-Federation Canada's quarterly economic report compiled by Maurren Far...
Mississauga, ON — The EFC Indicator, Electro-Federation Canada’s quarterly economic report compiled by Maurren Farrow of Economap Inc., Toronto, reports that having been a star performer among the G7 nations over the past several years, Canada’s tables were turned during the second quarter of 2003.
SARS, mad cow disease, the soaring Canadian dollar and weak demand south of the border all combined to knock the wind out of the Canadian economy, the report concludes.
As expected, Canadian real GDP for April declined by 0.2% from March, the first drop since September 2001. This output weakness came on the heels of a rapid deceleration in activity through Q1, 2003 and points to no growth being registered in the second quarter. This means that Canada’s ability to boast of being the star performer among the G7 nations is likely over. Canada is now poised for the United States to start outperforming this quarter for the first time since 1999.
It is anticipated that Canada’s economy will grow by just 2.1% in 2003 and 3.0% in 2004.
April’s decline broke a long string of monthly gains dating back to October 2001. The goods-producing sector fell 0.7% month over month in April, as manufacturing output dropped 0.4%. Meanwhile, the services sector was flat and was negatively impacted by the SARS outbreak. Construction increased 0.2% month over month but mining dropped 2.3%. Retail and wholesale sales fell 0.3% and 0.1% month over month, respectively.
Overall, this report is a far cry from the robust results of just a few months ago.
Electro-Federation Canada is a national, not-for-profit industry association representing over 250 member companies in the electrical, electronic and telecommunications industries in Canada. EFC oversees the following sector-specific industry organizations:
– Canadian Appliance Manufacturers Association (CAMA)
– Canadian Electronic & Appliance Service Association (CEASA)
– Consumer Electronics Marketers of Canada (CEMC)
– Canadian Electrical Manufacturers Representatives Association (CEMRA)
– Electrical Equipment Manufacturers Advisory Council (EEMAC)
– Medical Imaging and Information Systems Council (MIISC)
– Supply and Distribution Council (S&D)
For more information, visit www.electrofed.com.