(Adds data from report, background)
OTTAWA, March 1 (Reuters) - The Canadian economy slowed
substantially in the final quarter of last year as exports fell
and businesses held back on investments, suggesting the country
was still hurting from low oil prices, data from Statistics
Canada showed on Tuesday.
Even so, the 0.8 percent annualized increase in gross
domestic product in the fourth quarter topped both economists'
and policymakers' expectations for zero growth in the quarter.
The third quarter was also revised up slightly to 2.4
percent annualized, while growth in December was modestly better
than expected with a pick up of 0.2 percent.
Canada's economy contracted in the first two quarters of
2015, marking a mild recession as it was hit by the drop in the
price of oil, a major export. The renewed downturn in oil prices
has raised concerns growth could remain weak this year.
Indeed, on a non-annualized basis, goods exports dropped by
0.5 percent in the fourth quarter, driven by a decline in
aircraft and other transportation equipment and as exports of
energy products fell 2.8 percent.
Business investment in non-residential buildings and
machinery and equipment fell by 3.3 percent as companies spent
less on engineering structures in the midst of cheap oil and
weak investment in the sector. Lower oil prices also pulled
mineral exploration down 8.2 percent.
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Graphic - Canada monthly GDP, exports to the U.S. http://link.reuters.com/jev87s
Graphic - Canada economic dashboard http://graphics.thomsonreuters.com/15/sc-canada/index.html
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