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Coronavirus causes record drop in Canadian economy

Last Updated Aug 28, 2020 at 7:31 am PDT

Summary

Canada's GDP contracted at annualized rate of 38.7 per cent in second quarter

GDP was down 11.5 per cent in the second quarter compared to the first

It was the steepest fall in records back to 1961

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.”

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.

Richard Dettman will have more in Business at :26 and :56.