In August, Canada’s economy has unpredictably made its turn around once again, creating a newer addition to all the uncertainties the country is experiencing at present. One of which is whether Canada will soon be on its way to regaining recovery, having financial strength and sustainability of such recovery as far as all economic conditions are concerned.

Canada’s Gross Domestic Product

Canada’s real Gross Domestic Product or GDP went down by 0.1 % in August, the very first decline in three months. Industries that generate this GDP include

the oil and gas extraction industry, mining and manufacturing industries. And to date, economists have a negative reading on the one-centavo dive of the Canadian dollar. They say that the continuous flat line of Canada’s economy did not reverse as how some people had hoped it would. And because of this, economists say it becomes even harder for the economy to complement the most recent forecast of Bank of Canada last week that said they are expecting an average of 2% come third quarter. However, most economists believe that the third quarter will truly bring some humble growth.

American Vs. Canadian GDP In The Coming Quarters

In America, about half of the GDP rise during the third quarter and this could be well attributed to well-accepted cash programs as well as various government incentives for new and aspiring home owners. In Canada, however, their economists would like to put on a more hopeful fourth quarter despite Canadian economy’s palpable slowing down than they have expected.

And this prompted the Bank of Canada to impose interest at its lowest of 0.25% until year 2010 ends; especially with most of its industries continuing to get weaker and weaker. Even the oil-and-gas extraction fell short with its 2.3 % growth, and other countries’ responsibility to maintain its petroleum facilities on the East Coast.

Decrease In Manufacturing Activities

Economists say that one hardly hit by the recession are the manufacturing companies whose activity plummeted to a 0.7% while its other major allies are retreating. While wholesale sales went down by 0.5 % which indicates minimal demand in both foreign and domestic settings, the retails sales, on the other hand, went up by 0.3 % with the construction industry gaining 0.2%. It has also been observed that the productivity of the utilities has increased brought about by the simultaneous increase in both the distribution of natural gas, and distribution or production of electricity.

Truly, Canada’s economy is treading a limpy financial system at present. Not unless, the Canadian economy will have a boost of the country’s exports and perhaps a cut on its imports, will the fourth quarter be really far from getting a negative performance. And therefore, if this economic fallback continues to persist by the end of the year, and even uncontrollably increase by the coming year, 2010, then the more Canada will experience weakness not just on the aspect of importation   but export, most especially. Otherwise, if the economy all of a sudden reverses, then Canada can expect a much stronger and more productive quarter four.

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