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Canada's economy grew 1.2 per cent in August: Statistics Canada

Last Updated Oct 30, 2020 at 6:09 am PST

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

GDP grew 1.2 per cent in August compared with 3.1 increase in July, Statistics Canada

Slowing of GDP growth was expected

OTTAWA – The economy continues to recover from the bleakest days of the pandemic, but the pace has slowed, as expected.

According to Statistics Canada, gross domestic product rose by 1.2 per cent in August from July, which gained a revised 3.1 per cent.

The growth in August came as goods-producing industries rose 0.5 per cent and the services industries climbed 1.5 per cent.

Overall, the agency says economic activity was still about five per cent below the pre-pandemic level in February.

Statistics Canada’s estimate for September’s GDP growth is 0.7 per cent, and adds that month’s estimate implies a third-quarter growth of 10 per cent over Q2, which would work out to a stunning 46.4 per cent annualize surge.

Economists are expecting the rebound to continue slowing, with worries now shifting to the potential economic damage from the second wave of COVID-19.

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