Growing Drought, Wildfires Impact Canada's Q2 Economy

Growing drought and wildfires in many regions of the country contributed to lower crop production in the quarter as the yield outlook for the year declined.

Forestry and logging as well as fishing, hunting and trapping were also down in the quarter, while support activities for agriculture and forestry, which include forest firefighting activities, were up, the national statistical agency said.

Mining, quarrying, and oil and gas extraction contracted as wildfires affected activity in natural gas and crude oil extraction in Alberta in May, and iron ore mining in Quebec and Newfoundland and Labrador in June.

Accommodation services posted its first quarterly decline in the last five quarters as forest fires which began in late April in Canada, coupled with poor air quality associated with fires, restrained or indirectly discouraged activity in recreational vehicle parks and recreational camps, the agency added.

Canada's GDP decreased 0.2 percent in June and advance information indicates that real GDP was essentially unchanged in July, Statistic Canada said.

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