UPDATE - Canada's real GDP increases 0.5% in 2nd quarter

ADDS MORE FIGURES

By Ovunc Kutlu

ISTANBUL (AA) - Canada's real gross domestic product (GDP) rose 0.5% in the second quarter of this year, the country's statistical body said Friday.

Real GDP increased 0.4% in the first quarter.

"Higher government final consumption expenditures, business investment in engineering structures and machinery and equipment, and household spending on services in the second quarter were moderated by declines in exports, residential construction and household spending on goods," Statistics Canada said in a statement.

In the second quarter of 2024, government expenditures rose 1.5%, while business spending on machinery and equipment increased 6.5%, it added.

Growth in household spending slowed to 0.2% in the April-June period, after rising 0.9% in the January-March period, according to the agency.

- Exports, imports decline

"Higher expenditures for rental fees for housing, food and electricity led the increase in the second quarter," said the statement.

Statistics Canada said population growth outpaced the increase in household spending in the second quarter. As a result, per capita household expenditures fell 0.4% in April-June period, after rising 0.3% in the first quarter.

Exports of goods and services fell 0.4% in the second quarter, after rising 0.5% in the first quarter.

"In the second quarter, lower exports of unwrought gold, silver, and platinum group metals as well as of passenger cars and light trucks and refined petroleum energy products were moderated by higher exports of crude oil and bitumen," said the statement.

Imports of goods and services, meanwhile, declined 0.1% in the second quarter, after recording no change in the first quarter.

"Lower imports of industrial machinery, equipment and parts, commercial services and refined petroleum energy products led the decrease in the second quarter, while higher imports of passenger cars and light trucks tempered the overall decline," it said.

The agency said housing investment was down 1.9% in the second quarter, marking the largest decline since the first quarter of 2023. The decrease was driven by lower investment in new construction, which fell 1.6%.