Canadian economic growth fell in May in its biggest monthly decline since March 2009 as wildfires in northern Alberta caused a sharp drop in oil extraction, data from Statistics Canada showed on Friday.
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Enbridge says it took longer than originally anticipated for oilsands production to resume and average deliveries for the months of May and June were down by an average of 255,000 barrels per day – 10 per cent lower than just before the fires. Economists had expected a decline of 0.4 per cent.
Smoke and flames from the wildfires erupt behind a vehicle on the highway near Fort McMurray, Alberta, Canada, May 7, 2016.
Other sectors were bruised nearly as badly, as manufacturing output was down 2.4% the largest decline there since January 2009. However, there was little evidence that the wildfires significantly affected other sectors of the economy, the government’s statistical agency said.
In April, the economy saw a whiff of economic growth at 0.1 per cent, though that followed two consecutive months of contraction.
Utilities declined 1.8 per cent as electric power generation, transmission and distribution were lower, as was the natural gas distribution sector. The bank sees a one-per-cent decline in GDP for the second quarter of this year.
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Revenue from insurance policy premiums was $2.46 billion, up five per cent from $2.34 billion a year ago, but underwriting income fell to $16 million from $158 million as the fire offset growth elsewhere.
