Canadian GDP Declines

Canada's Gross Domestic Product for Q4 2008 registered a drop of 3.4%.It was the greatest decline since 1991.The estimate for Q4 GDP had been a 3-4% drop.Canada fared better than the U.S. and Japan,where the GDP fell 6.2 and 12.7%,respectively.In response to economic rumblings,the Bank of Canada has cut its key interest rate to 0.5%.The U.S. Federal Reserve had earlier cut its main rate to a very low 0-0.25%.Bell Canada is finding opportunity in the financial crisis.It has acquired the Canadian operations of U.S.-based Circuit City,an electronics retailer which filed for bankruptcy in November 2008.The deal is expected to close in Q3 2009,but the terms were not disclosed.