Canada's GDP Rise In 3rd Period Led By Exports to U.S.
OTTAWA -- Canada's gross domestic product rose at an annual rate of 2.4% in the third-quarter, led by strong exports to the U.S., Statistics Canada, a government agency, said.</br></br>The July-September period was the 10th consecutive quarter that Canada has recorded an increase in its GDP, the total value of goods and services produced in the country.</br></br>Exports rose at an annual rate of 7.8% in the third quarter in response to the U.S. economic advance. The U.S. takes more than 80% of Canada's exports.</br></br>Strong business spending on machinery and equipment also contributed to third-quarter growth, Statistics Canada said. Consumer spending, damped by recent tax increases, showed only a modest gain.</br></br>Economists predict that Canada's economic growth will accelerate in coming months as a result of growing U.S. demand for autos, building materials and other goods, which Canada exports. The U.S. economy will remain Canada's driving force into 1994, said John Clinkard, senior economist at the Canadian Imperial Bank of Commerce.