(Adds details from report)
OTTAWA, Aug 31 (Reuters) - Canada's economy shrank in the second quarter in its worst showing in seven years, hurt by a drop in exports and a disruption to oil production caused by wildfires in northern Alberta, data from Statistics Canada showed on Wednesday.
Gross domestic product contracted at an annualized 1.6 percent rate in the second quarter, slightly better than economists' forecasts for a decrease of 1.5 percent. It was the biggest annualized decline since the second quarter of 2009 when Canada was in a global credit crisis-induced recession.
The drop in exports and services was the main hit to growth in the second quarter, with the sector tumbling at an annualized 16.7 percent. The decrease in exports of goods was widespread across most categories, including motor vehicles and parts, and consumer goods.
There was also a decline in exports of energy products, including crude oil and crude bitumen, due to wildfires in May in the oil sands area of Fort McMurray, Alberta. The fires forced the evacuation of some 90,000 residents and disrupted numerous oil operations. there were signs that a pickup was already underway. The economy grew 0.6 percent in June, helped by a rise in non-conventional oil extraction as capacity returned following the fires.
<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ 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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