Friday, April 12, 2024

Canada’s first drop in GDP in a year

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Alan Binder
Alan Binder
"Alcohol scholar. Twitter lover. Zombieaholic. Hipster-friendly coffee fanatic."

Despite progress in COVID-19 vaccination campaigns and the recovery already underway in the country, Canadian economic activity remains roughly 1% below its pre-pandemic level in February 2020.

According to Statistics Canada, 12 of the 20 economic sectors used to measure GDP activity showed a decline in April.

Retail and construction as well as real estate and rental and leasing services contributed the most to the decline, while gains were seen in finance and insurance as well.Explains the Federal Agency in its monthly bulletin.

According to preliminary data, Statistics Canada adds, real GDP is expected to decline 0.3% in May as well. Official GDP data will be released at the end of July.

However, experts expect economic activity to rebound in June, due to the late spring downturn and an increase in consumption spurred by the reopening of bars, restaurants and stores.

With restrictions effectively lifted across the country, Canadians who have been living in isolation for months now have the opportunity to spend more on goods and services, which should translate into higher economic indicators in the near future.

Remember, GDP is still recovering from a historic decline of 5.4% in 2020, during the arrival of the COVID-19 epidemic that imposed restrictions on many countries in America, Asia and Europe, including all the major industrial and financial powers.

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