Canada exits recession with 2.3% growth in Q3

Canada exited recession in the third quarter, as its economy bounced back with 2.3 percent annual growth after being hit by plunging oil prices earlier this year , the government statistics agency announced Tuesday.

The economy`s return to growth was attributed mainly to rising demand for Canadian goods and services abroad, as exports shot up 9.4 percent in the quarter ending September 30, said Statistics Canada.

Domestic consumption, meanwhile, was flat, it said.

Analysts had forecast slightly better growth after GDP fell 0.3 percent the previous quarter.

According to government data, exports of passenger cars and light trucks, as well as consumer goods and crude oil and crude bitumen, increased in the quarter.

Exports of commercial and transportation services also rose, but were mitigated by declines in travel and government services.

Declines were also recorded in metal and non-metallic mineral products and basic and industrial chemical, plastic and rubber products.

Imports fell, led by declines in passenger cars and light trucks, food, beverage and tobacco products and intermediate metal products.

Imports of services also fell. Canadians used less foreign travel, transportation and commercial services.

But the nation imported more tires, motor vehicle engines and parts, communications and audio and video equipment and basic chemicals and industrial chemical products. 

Household expenditures increased but at a slower pace than the previous quarter. Canadians spent more on new vehicles, recreational and cultural activities, and food and beverages.

Expenditures on clothing and footwear fell, however.

New home construction also picked up, offsetting a decline in home renovations.

But business investment in machinery and equipment continued to fall. The decrease was led by industrial machinery and equipment, while investment in communications and audio and video equipment grew.