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Canada has emerged as the top performing economy of the G7 nations after its excellent growth in the first quarter of 2017. On the other hand, the UK has reached the lowest position in the league of advanced G7 nations, as quoted by The Guardian.
Canada submitted its growth figures in the last and this has confirmed its top position while giving the last place to the UK as the nation performing the worst in this year. It also marks a crucial lowering of the economy of the UK that is already shadowed by the uncertain Brexit outcome.
The latest statistics for Canadian economy have revealed that its growth accentuated to 0.9% in the first three months of 2017 making it the top performer in the G7 league. The second position was secured by Germany with the growth of 0.6%, third position by Japan with 0.5% growth, fourth by France with 0.4% and fifth by the US with 0.3% growth. The lowest position is jointly occupied by Italy and the UK with just 0.2% growth.
Prices are witnessing a sharp rise in the UK after the Brexit referendum as the UK pound declined sharply after the vote decided to exit from the EU, increasing the cost of UK imports. Increasing inflation has severely affected the budget of households in the UK making a dent in the consumer spending, the chief driver of growth of UK economy.
Canada, on the other hand, had no such issues where the federal statistics agency revealed that the actual GDP increased at the rate of 3.7% annually for the first quarter of 2017. This was largely owing to the increase in household spending and inflows of investment in businesses.
The economy of Canada appears to be on a firm ground even for the second quarter of 2017 as the growth was increasing at an impressive rate better than estimated 0.5% in March that was owing to increases businesses activity in the retail trade and manufacturing sectors.
The growth of Canada’s economy has also been assisted by rebuilding of inventories by the businesses according to the economy experts. On the other hand consumer spending also increased, especially on vehicles. Salaries increased by 1% while compared with the earlier quarter and savings decreased to 4.3% from the previous 5.3%.
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