Loading articles...

Canadian economy posted record drop in Q2 due to pandemic

Last Updated Aug 28, 2020 at 10:09 am EDT

A closed store front boutique business called Francis Watson pleads for help displaying a sign in Toronto on April 16, 2020. THE CANADIAN PRESS/Nathan Denette
Summary

Real gross domestic product contracted at an annualized rate of 38.7 per cent for the three-month period

Almost every single component of the economy that works into calculating GDP was at its lowest point over April-June

Statistics Canada says the economy posted its steepest decline on record in the second quarter as the COVID-19 pandemic forced the closure of non-essential businesses and slowed the economy to a crawl.

The agency says real gross domestic product contracted at an annualized rate of 38.7 per cent for the three-month period.

Economists had expected a contraction in the quarter at an annualized rate of 39.6 per cent, according to financial markets data firm Refinitiv.

Almost every single component of the economy that works into calculating GDP was at its lowest point over April, May and June — driven largely by lockdowns in April.

Economic output rebounded in May by 4.8 per cent, and the agency says June posted an increase of 6.5 per cent.

The agency’s preliminary estimate for July indicates a three-per-cent increase in real GDP.

Latest Traffic & Weather
680 NEWS TRAFFIC @680NEWStraffic 680 News Traffic Twitter verified icon
Updated Yesterday at 11:19 PM
CITY STREETS: Weston Rd. is closed both directions between Church and St. Phillips for broken water main.
Latest Traffic
680 NEWS WEATHER @680NEWSweather 
Updated Yesterday at 03:11 PM
Nothing like a warm and sunny September day!
Latest Weather