It’s the Canadian economy’s worst performance in seven years.
Statistics Canada says real gross domestic product fell at an annualized rate of 1.6 per cent in the second quarter, due largely to the Fort McMurray wildfire.
It’s the biggest quarterly drop since the second quarter of 2009 when Canada was in the midst of a global financial crisis.
The contraction came as exports fell overall by 4.5 percent.
Energy experts were down 7.5 per cent while exports of vehicles and parts dropped 5.8 per cent, due to lower exports of cars and trucks.
The bright side of the report finds, despite the pull back for the quarter as a whole, the Canadian economy returned to growth in June with the GDP up 0.6 per cent.
The boost was in part due to the resumption of oilsands activities following the Fort McMurray evacuation and shutdowns.