Coronavirus causes record drop in Canadian economy
Posted August 28, 2020 5:39 am.
Last Updated August 28, 2020 10:31 am.
OTTAWA (NEWS 1130) – Canada’s economy contracted at an annualized rate of 38.7 per cent in the April-to-June period, with gross domestic product down 11.5 per cent in the second quarter compared to the first.
It was the steepest fall in records back to 1961.
“In contrast, real GDP in the United States fell 31.7%,” Statistics Canada writes, adding, “Most GDP components posted a record decline in the second quarter.”
Canada's economy contracted at an annualized rate of 38.7% in the April-to-June period, with gross domestic product down 11.5% in the second quarter, the steepest fall in records back to 1961. Statistics Canada says GDP rose 6.5% in June. Preliminary July estimate is a 3% rise. pic.twitter.com/GCuY4QeO1l
— Richard Dettman (@rwdettman) August 28, 2020
April was the first full month of coronavirus-related lockdowns. Businesses shut down and spending hit a low as people tried to physically distance in order to slow the spread of COVID-19.
The agency says GDP surged 6.5 per cent in June compared to May, and its preliminary estimate is for a three-per-cent increase in July.
Economists had expected a contraction in the quarter at an annualized rate of 39.6 per cent, according to financial markets data firm Refinitiv.
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