Canada's GDP likely fell 7.3% in the first 3 months of 2009

On Thursday April 23, Canada's central bank said the GDP (Gross Domestic Product) likely fell 7.3 percent in the first three months of 2009, which would be the biggest contraction since comparable records began being kept in 1961.

The Bank of Canada cut its interest rate by a quarter point to 0.25 percent, and it will likely stay there through June 2010 according to the Bank.

NB While the 7.3% figure is just a projection, most Internet sources seen cited it as the actual shrinkage (something, we gather, like laundry) in 1Q Canadian GDP. Go figure...

US GDP and consumer spending in the first quarter 2009

The GDP (Gross Domestic Product) is a leading economic indicator. US GDP is a measure of the total goods and services output within the US borders. (NB Total here, like everything else, is relative, as we learned a while ago from the more diligent economists in Greece.)

The report from the Commerce Department this morning indicated a 6.1 percent annual rate drop in GDP for the first 3 months of 2009.

On the positive side, consumer spending - which accounts for over two-thirds of the economic activity, rose 2.2 percent.