Statistics Canada - Statistique Canada
Skip main navigation menuSkip secondary navigation menuHomeFrançaisContact UsHelpSearch the websiteCanada Site
The DailyCanadian StatisticsCommunity ProfilesProducts and servicesHome
CensusCanadian StatisticsCommunity ProfilesProducts and servicesOther links

Warning View the most recent version.

Archived Content

Information identified as archived is provided for reference, research or recordkeeping purposes. It is not subject to the Government of Canada Web Standards and has not been altered or updated since it was archived. Please "contact us" to request a format other than those available.

Media Room Search The Daily View or print The Daily in PDF format. Requires Adobe Acrobat Reader The Daily archives Latest release from the Labour Force Survey Latest release from the Consumer Price Index Recently released products Latest economic indicators Release dates Get a FREE subscription to The Daily Information about The Daily The Daily
Thursday, July 20, 2006

Current economic conditions

Canada's international investment position improved substantially in the first quarter, with net foreign debt falling 8% to a record low share of gross domestic product. The drop reflected increased purchases of foreign bonds and direct investment abroad by Canadians.

In 2005, Canadian firms continued to concentrate direct investment abroad in the United States (46%) and Europe (25.6%). Suggestions that investment is migrating to low-wage countries like Mexico, China and India are not borne out by the data, as these countries host only 0.9% of Canadian direct investment abroad.

The trend in Mexico has fallen since 2000. The Canadian investment in China was virtually unchanged last year at $1.0 billion, while India remained negligible at $0.2 billion. Australia is the largest destination in Asia for Canadian investment at $8.2 billion.

Provincially, Alberta has been the driving force behind the surge of retail sales so far in 2006. A 3.9% jump in April brought growth since December to 9.4%, compared with only a 3.8% increase in the rest of Canada. Strong employment and income growth underpinned these increases.

Ontario has been increasingly reliant on construction and retail sales for growth, as manufacturing stagnated. Shipments edged down in April, their third drop in four months. Steady losses in the auto industry were partly offset by gains in metals and capital goods. Retail sales continued to grow, up 1.2% in April, but remained below most other regions.

Conversely, Quebec posted buoyant retail sales but slow construction growth. Retail sales rose 1.6% in April, behind only the increase on the Prairies. Housing permits for single-family homes have trended down all year, hitting in April their lowest level since the post-9/11 boom began. Manufacturing shipments have levelled off so far this year after a solid 5% gain in 2005. Losses in clothing and paper were offset by gains for aluminium and petroleum.

British Columbia had a slow start to the second quarter. Housing starts in May fell to their lowest level since January 2005. Like Ontario, retail sales growth remained below the national average. Non-residential building remained strong, after permits neared a record high in March, and so far this year are 4% ahead of last year's pace.

Definitions, data sources and methods: survey numbers, including related surveys, 1301, 1901, 2152, 2306, 2406 and 3701.

The print version of the July 2006 issue of Canadian Economic Observer, Vol. 19, no. 7 (11-010-XPB, $25/$243) is now available. This issue summarizes the major economic events that occurred in June and presents a feature article entitled "Head office employment in Canada, 1999 to 2005."

The Canadian Economic Observer: Historical Statistical Supplement, 2005/2006 (11-210-XPB, $28) is also now available.

For more information, or to enquire about the concepts, methods or data quality of this release, contact Francine Roy (613-951-3627; ceo@statcan.gc.ca), Current Economic Analysis Group.



Home | Search | Contact Us | Français Return to top of page
Date Modified: 2006-10-31 Important Notices