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GDP data disappoints

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In Canada, bad weather and a strong loonie contributed to a 0.3-percent decline in GDP in May from the previous month-marking the largest pullback since May 2009. While in the U.S., the economy grew at a 1.3-percent annual pace in the second quarter. The U.S. Commerce Department also revised downward first quarter growth to 0.4 percent from a previous 1.9-percent figure.

"It doesn't look good," John Clinkard, Chief Economist at Deutsche Bank Canada, tells BNN.

Clinkard says Friday's Canadian GDP figure is hinting at dismal second quarter growth figures.

"Given this number it will be difficult to get to one percent, quite honestly," he says.

As for the U.S. economy, Clinkard says the recent figures highlights an unusual situation.

"We describe this as a growth recession, the fact that you're seeing sub-par growth and rising unemployment suggests the economy has down-shifted in the U.S." he says. "We're seeing a more measured pace of growth and that suggests things are going to take a little longer to get better."

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