OTTAWA (NEWS 1130) – Gross domestic product took a massive hit in April, when COVID-19 shutdowns were in place for a full month.
Statistics Canada says the GDP shrank 11.6 per cent compared to March, which was down 7.5 per cent from February. This is the largest monthly decline since the agency started tracking the GDP in 1961.
However, Statistics Canada says its initial flash estimate for May points to a growth of three per cent, which will be revised and finalized at the end of July.
The median of economists’ expectations was for a 12.2 per cent decrease, while an earlier Statistics Canada flash estimate was for a drop of 11 per cent.
GDP fell in April as COVID-19 shutdowns were in place for a full month. Statscan says GDP shrank 11.6% from March, which was down 7.5% from February. The median of economists' expectations was for a 12.2% decrease, an earlier Statscan flash estimate was for a drop of 11%. pic.twitter.com/QVEYeQwGKh
— Richard Dettman (@rwdettman) June 30, 2020
“The economy was 18.2% below its February level, the month before the COVID-19 measures began,” Statistics Canada notes.
It says all 20 sectors decreased in April.
Manufacturing was down 22.5 per cent in April as many factories either shuttered or greatly reduced capacity in line with public health measures to slow the spread of COVID-19.
The output of the accommodation and food services sector dropped 42.4 per cent in April, as customers replaced eating out with staying in, hitting a sector that saw a 37.1 per cent decline in March.