Business

Canadian economy pulls out of recession

Canadian oil sands site Image copyright Getty Images

Canada's economy emerged from recession in the third quarter after exports picked up, official figures show.

Gross domestic product (GDP) rose at an annualised rate of 2.3% compared with the year before.

Higher consumer spending and a more buoyant housing market also added to growth.

On Wednesday Canada's central bank meets to decide the level of interest rates. The bank has cut rates twice this year to 0.5%.

Exports were 9.4% higher in the third quarter compared with a year ago, boosted by demand for motor vehicles. Oil exports were also higher.

Previous figures showed GDP shrank by an annualised rate of 0.5% between April and June.

That followed a contraction of 0.8% in the first quarter, meaning the economy saw two consecutive quarters of negative growth, the usual definition of recession.

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