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Canada’s Economy Shrinks Almost 12% in Historic April Contraction

Published 2020-06-30, 08:37 a/m
Updated 2020-06-30, 08:54 a/m
© Bloomberg. Shoppers carry purchases inside the Eaton Centre in Toronto, Ontario, Canada, on Wednesday, June 24, 2020. Canada's largest city has reopened restaurant patios, shops and swimming pools after officials determined that the Covid-19 virus is under control. Photographer: Cole Burston/Bloomberg

(Bloomberg) -- Canada’s economic activity collapsed in April, with the country recording its biggest drop in output on record in the first full month of lockdowns to curb the Covid-19 pandemic.

Gross domestic product shrank by 11.6%, adding to the 7.5% decline in March, Statistics Canada said Tuesday in Ottawa. Economists had anticipated a 12% contraction.

With the historic decline fully anticipated, the focus now shifts to how quickly and to what extent the economy will recover. May looks to have seen a small rebound, with the agency’s flash estimate predicting a 3% increase.

That would leave economic output at about 16% below levels in February and policy makers have been warning that a full recovery remains a long way off.

Tuesday’s report showed the downturn in April was broad-based, with all 20 industrial sectors down. Services-producing sectors recording a 9.7% decline, led by retail trade and transportation. Goods-producing industries saw a 17% decline in output.

©2020 Bloomberg L.P.

Latest comments

Canada, the northern superpower against Covid-19! Better results than the US Administration, except with a lower per capita defense budget. Well done Canada. Something else to celebrate on Canada Day!!!
Try telling that to the families of the 8500+ Canadians whom have died from CV-19. You are a disgrace to Investing.com for uttering such verbal diarrhea and should be banned for saying such insensitive, idiotic commentary Ed Crain. Shame on you
130,122 dead in US over 3.5 months because of an ineffective US Administration. Over twice the deaths of Americans in Vietnam over 20 years. Perhaps you should concentrate your Hate speech towards the US Administration if you have such great concern for life. Canadians will celebrate life and our success as a superpower against Covid-19. And to continue the celebration of life, Mr. Trudeau will continue to keep the Canada/US border closed to inessential travel. Well done Mr. Trudeau!!!
You must be talking about the US, Corvin Fixpn. Canada is already opening successfully. We will be fine. Not a single case of Covid-19 in a 500km radius of me. One restaurant is making $10,000 per day in takeout orders, in addition to in-restaurant orders. Their kitchen can't keep up to demand with a full kitchen staff.Americans, on the other hand, are currently in a huge world of hurt just trying to open to our stage. Their economy is under threat of another lockdown and another huge stimulus package. Awesome work Mr. Trudeau and Canadians. You have shown the world what can successfully be accomplished, despite the growing threat south of the border. Americans are jealous of our accomplishments, and should be. Getting where we are was not easy, but we've proven it can be done!
Only Americans or Trudeau Haters would vote down Canada's success against Covid-19. However, voting it down does not change the fact of such great Canadian accomplishments. Haters only hate themselves and want others to feel as bitter and miserable as they do. What a damaged existence they must live!
Daniel Chiarelli, I'm not going to compare success stories, especially with an island nation like New Zealand that can only be accessed by boat or plane. Canada is currently next door to a thriving cancer, from a virus perspective, and a US Administration that wouldn't even acknowledge that Covid-19 existed. That's equivalent to being held hostage at gunpoint and still managing to escape unscathed. Canadians need not compare their successes. Why compare your wealth with the wealth of others? That just generates jealousy and eventually Hate. Canadians don't do that, only Americans do. Keep the border closed to nonessential travel, Mr. Trudeau so that Canadians can continue to thrive as a superpower against Covid-19!
Jealous negative comments from Americans infected with Covid-19. Perhaps you should be concerned with the US Administration instead of Canadians. At least we don't Hate like Americans do.
CDC says U.S. has ‘way too much virus’ to control pandemic as cases surge across country. The coronavirus is spreading too rapidly and too broadly for the U.S. to get it under control as some other countries have, Dr. Anne Schuchat, principal deputy director of the Centers for Disease Control and Prevention, said Monday 06.29.
Only Canada is able to successfully reopen, despite the major spread of the virus south of the border. If Americans had the same dedication as Canadians towards defeating Covid-19, they would be recovering their economy, as well. Keep the border closed to nonessential travel, Mr. Trudeau and let's continue to thrive, despite Covid-19!
Thumbs down on successfully flattening the Covid-19 curve in Canada? You must either be a Hater of Canada or a jealous American Hating Canadian accomplishments against Covid-19. Either way, you are a Hater of life that is miserable of everything, including yourself. How did you become so damaged???
We are in for a world of hurt if we dont re-open the evonomy fully.
You must be talking about the US, Corvin. Canada is already opening successfully. We will be fine. Not a single case of Covid-19 in a 500km radius of me. One restaurant is making $10,000 per day in takeout orders, in addition to in-restaurant orders. Their kitchen can't keep up to demand with a full kitchen staff.Americans, on the other hand, are currently in a huge world of hurt just trying to open to our stage. Their economy is under threat of another lockdown and another huge stimulus package. Awesome work Mr. Trudeau and Canadians. You have shown the world what can successfully be accomplished, despite the growing threat south of the border. Americans are jealous of our accomplishments, and should be. Getting where we are was not easy, but we've proven it can be done!
Canada did a good job but new Zealand had this one in the bag
that is no news, it is has reopened and going back to normal.
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