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Oil shock drags down Canadian economy in first quarter


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Canada's economy contracted 0.6 percent at an annualized rate in the first quarter, dragged down by a plunge in oil prices, the government's statistical agency said Friday. The Bank of Canada, the central bank, had expected growth to be flat at the start of the year after Brent crude oil prices plummeted from above $100 to below $50 last year, before starting to creep up recently. According to Statistics Canada, upstream oil and gas activities still reeling from the oil shock declined 30 percent in the first three months of 2015.

 

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