The Canadian GDP report for the year’s second quarter demonstrated the severity and scope of the impacts of the COVID-19 pandemic on Canadian economic activity.
After a 2.1% decline in the first quarter, real gross domestic product fell by 11.5% in the second. The decrease reflects record declines in household spending and non-residential business investment, as well as sharp declines in cross-border trade.
Closures of non-essential businesses and high levels of income uncertainty lead to steep declines in household spending, down by 17%. Export and import volumes were down by about 20% as business closures in Canada and abroad affected trade activity.
June’s monthly GDP report also highlighted the gradual strengthening of economic activity as efforts to reopen the economy continue.
Although economic activity in June remained 9% below pre-pandemic levels in February, real gross domestic product rose 6.5% in June, following a 4.8% increase in May. Manufacturing output continued to rise in June but still 12% below pre-pandemic levels.
Activity in accommodation and food services also strengthened in June, but remained 45% below pre-pandemic levels. Output in retail trade industries in June exceeded pre-pandemic levels. Learn more by clicking here.
Read Employment E-News – September 2020 – Helping You as the Economy Re-Open
