OTTAWA Reuter: Canada today reported higher than expected second quarter growth sparking optimism over economic performance for the rest of the year.
Economy officials said gross domestic product (GDP) the main indicator of the Canadian economy rose a healthy 0.6 per cent in the second quarter compared with the disappointing 0.5 percent in the first quarter.
It looks like we have 2.5 per cent growth built in already if not more so barring any complete disaster in the second half (of 1986) you’re probably going to see growth in the three to 3.5 per cent range in 1986 said economist J.D.
Donegan of the Securities Firm Midland Doherty.
Last year the Canadian economy grew 4.4 per cent but many economists after the weak first quarter showing forecast an increase of three per cent or less in 1986.
The stronger-than-expected growth sent the Canadian dollar soaring on North American money markets. For the first time in nearly two weeks it rose above the 72 U.S cents mark after closing at 71.85 cents.
Money traders had been predicting negative to flat growth in the second quarter and the poor performance of the currency recently reflected those bearish sentiments.
Article extracted from this publication >> September 5, 1986
