In Canada, the slow-down of the US economy and declining income from the energy sector have been felt considerably. These have caused the 1Q15 GDP to decline by 0.6%. Industrial production has also been significant as it fell in April by 1.7% y-o-y, after a decline of 0.4% y-o-y in March.
This points to a continued weak economy. Given the challenges in the resource sector, mining, oil and gas extraction growth declined by 2.9% y-o-y in March and even stood at -5.8% y-o-y in April. This development has led to a downward revision of the 2015 GDP growth forecast to 1.6% from 2.1%. Growth in the coming year is expected to be only slightly higher at 2%.