Canadian Economy Shrinks Nearly 40% During Early Days Of Covid-19
Aug 28, 2020
By Bob Komsic
Canada’s economy experienced it’s sharpest, fastest decline on record between April and June.
Statistics Canada say the country’s Gross Domestic Product shrank by 11.5% in those three months.
That works out to a 38.7% drop for the year; the largest the economy has seen dating back to 1961.
While the numbers clearly show the severity of the impact of COVID-19, they appear to suggest things may turn around almost as quickly.
The second quarter (April-June) was the worst for Canada’s GDP in nearly 60 years, yet the numbers for June make it the biggest rebound on record.
The GDP grew by 6.5% as provinces reopened, however, that’s still 9% below where it was in February.
Preliminary data for July suggest the economy grew another 3% from June, giving economists, like the Bank of Montreal’s Doug Porter, hope growth will ”snap back with purpose in Q3,” while others, like TD Bank’s Brian DePratto say we may be through the worst of it, ”but it is still a long road to normal.”