Canadian economy shows signs of growth, despite contraction in finance and insurance sector

Canada’s economy is starting to grow again, although the finance and insurance sector is still in a state of retreat, according to a recent report by StatsCan.Canada’s real gross domestic product grew 0.2% in October 2009, a second consecutive monthly advance. Production increased in most major sectors of the economy, except in the finance and insurance sector, where the monthly GDP decreased 0.7% in October.”Lower volume of trading on the stock markets led to a decline in activity by securities traders,” StatsCan said, providing context to the finance and insurance sector result. “To a lesser extent, banking and insurance services also declined.”A significantly higher level of activity for real estate agents and brokers provided the largest contribution to the 0.2% gain in service industries, StatsCan notes.”The buoyant market for existing homes led to a 7.2% increase in the activity of real estate agents and brokers in October,” StatsCan says. “Sales of existing homes grew significantly in several parts of the country.”The main industries experiencing growth were fabricated metal products, paper products and primary metals. Manufacturers of transportation equipment (excluding motor vehicles), chemicals and wood products reduced their production.Several tourism-related industries advanced in October, notably air transportation, accommodation and food services, and arts and entertainment.