GDP trends down in second quarter of 2021

By Hana Mae Nassar and The Canadian Press

OTTAWA – Statistics Canada says the economy contracted 0.3 per cent in the second quarter of 2021.

The slowdown compares with three quarterly increases that followed last year’s sharp decline due to the onset of the COVID-19 pandemic and related, sweeping business closures.

According to Statistics Canada declines in home resale activity and exports are what drove the drop in the second quarter of this year.

The agency says increased business and government spending, as well as new home construction and renovations weren’t enough to make up the shortfall.

It adds the economy contracted at an annualized rate of 1.1 per cent in the second quarter of 2021.

Initial estimates for July shows a contraction of 0.4 per cent.

Statistics Canada says total economic activity in July was about two per cent below pre-pandemic levels recorded in February 2020.

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