As was expected, the Canadian economy shrunk in the second quarter of 2016.
New figures released by Statistics Canada on Wednesday morning show that real gross domestic product fell at an annualized rate of 1.6 per cent in the three month period, with the drop representing the biggest quarterly decline in seven years.
Economists had expected a drop of 1.5 per cent.
The poor showing is being partly blamed on the wildfire that devastated the Albertan city of Fort McMurray in May which led to the suspension of oilsands operations.
A fall of 4.5 per cent in exports is also being touted as another reason for the contraction.
Energy exports fell 7.5 per cent while exports of motor vehicles and parts dropped 5.8 per cent due to lower exports of passenger cars and light trucks.
However, despite the dip when the quarter as a whole is considered, the economy returned to growth in the month of June when real GDP rose 0.6 per cent.