Global Markets: Canadian economy shrinks in July

Third time in four months GDP downsizes

Compiled by Glen Hallick, MarketsFarm

WINNIPEG, Oct. 1 (MarketsFarm) – The following is a glance at the news moving markets in Canada and globally.

– Statistics Canada said on Friday that the country’s GDP shrank by 0.1 per cent in July as the COVID-19 pandemic continued to play havoc on the economy. This marked the third time in four months that the GDP contracted. The report said there was a 12 per cent gain in the accommodation and food services sector, along with an eight per cent rise in the entertainment and recreation sector. However, the agriculture sector retreated 5.5 per cent, utilities were down 4.9, forestry and logging fell 3.9, manufacturing pulled back 1.1 and construction by 0.9. All of this has left Canada’s economy two per cent smaller than when the pandemic struck more than a year and a half ago.

– United States President Joe Biden was hit with a political setback as his US$1 trillion public works bill has stalled in Congress. Strong opposition to the bill is coming from progressive Democrats, who want Biden to sign-off on another bill for US$3.5 trillion for welfare and climate change. Meanwhile, moderate Democrats call the latter legislation “fiscal insanity” wanting to slash it by US$2 trillion. Biden and House Speaker Nancy Pelosi will attempt to reach a compromise on Friday between the two wings of the party. Democrats hold tiny majorities in the House of Representatives and in the Senate.

– Canadian fashion mogul Peter Nygaard will be extradited to the United States. On Friday, court in Winnipeg, Man. heard the 80-year-old Nygaard agree to be sent to New York City where he faces several charges of human trafficking, including underage girls, to which he denies. Accusers have alleged the fashion mogul plied them with alcohol and drugs to coerce them in having sex with his guests at his properties in California and the Bahamas. If found guilty Nygaard would face a lengthy prison sentence.

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