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GDP grows in May after unprecedented decline due to COVID-19

Last Updated Jul 31, 2020 at 7:00 am PDT

FILE - Statistics Canada building and signs are pictured in Ottawa on July 3, 2019. THE CANADIAN PRESS/Sean Kilpatrick
Summary

The GDP grew 4.5 per cent in May

Growth in May comes after two months of unprecedented declines due to COVID-19 impacts on economy

Despite May's increase, economic output contracted by 12 per cent in the second quarter

OTTAWA (NEWS 1130) – The GDP shows Canada’s economy is starting to come back after taking a massive hit at the height of the coronavirus pandemic.

The real gross domestic product grew 4.5 per cent in May as provinces and territories started to reopen sectors of their economy following COVID-19 shutdowns, Statistics Canada says.

The national data agency says rebounds in May were seen across multiple industries with the easing of COVID-19 restrictions, including retail trade that registered a 16.4 per cent bump to mark its largest monthly increase since comparable readings began in 1961.

In a flash estimate for June, the agency says the economy continued to grow at an annualized rate of 5 per cent.

Despite the two months of growth after two months of negative readings, Statistics Canada’s preliminary estimate is that economic output contracted by 12 per cent in the second quarter.

March and April saw unprecedented declines when emergency measures to slow the spread of the coronavirus were brought in.

Martin MacMahon will have more in Business at :26 and :56.