We knew the news for GDP for the second quarter would not be good owing to the Alberta Wildfires taking a chunk out of economic growth.
In fact, GDP declined by an annualized rate of 1.6% in the three months ending June 30th.
This was an expected negative turnaround to the 2.5% first quarter growth.
But what is more disappointing is that even without the hit from the wildfires, GDP would only have grown in the quarter by a measly annualized four-tenths of 1%, in what has now proven to be the weakest quarter since the Great Recession.
The slump is worrisome, because it came in a sector of the economy that should be gaining strength with a broad-based slump in goods exports, as well as moderate consumer spending and continued weak business investment.
With the Canadian dollar continuing to struggle, our balance of trade is not picking up as expected with exports of goods falling by 5.5% in the second quarter.
This was the largest decline in exports since the first quarter of 2009.
On a brighter note, GDP did pick up in June and analysts are looking for better numbers in the third quarter, albeit the trajectory is looked to be modest at best.