TOP OF THE WORLD, MA!

Economy takes 'wicked beating': Shrinking GDP means interest rate will likely be cut (Jason Chow, 9/01/03, National Post)

The Canadian economy shrank in the second quarter, its first decline in almost two years, and economists warn the rest of the year will continue to be slow.

Canada's gross domestic product contracted at a 0.3% annual rate during the period between April and June as the outbreak of SARS and mad cow disease slowed business, while the soaring Canadian dollar crimped exports, according to a Statistics Canada report released yesterday.

"The Canadian economy took one wicked beating," said TD Bank economist Marc Levesque. "Much more disheartening, however, is the fact that the Canadian economy ... may be hard-pressed to record much growth in the third quarter either."

That raises the risk of a technical recession, should growth shrink again this summer.

Canada's record as an economic powerhouse compared to the United States is likely over, said Craig Wright, Royal Bank chief economist

Wow! Remember the stories from this Summer crowing aboput how this was the "Canadian moment"? Looks like that's exactly how long it lasted: a moment. Posted by Orrin Judd at September 1, 2003 2:09 PM