The Toronto skyline in Canada

Canada GDP April 2020

Canada: Economic output plummets at the sharpest pace on record in April

The economy contracted 11.6% month-on-month in April, sharper than March’s 7.5% decrease and slightly worse than Statistics Canada’s preliminary estimate of a 11.0% fall. The economy shrank17.1% year-on-year in April, which was greater than March’s 5.9% drop.

Moreover, on 30 June, Statistics Canada released a special flash estimate of GDP for May to provide a snapshot of the state of the economy. The preliminary figure pointed to a 3.0% increase in activity on a month-on-month seasonally-adjusted basis.

In April, activity in the goods-producing industries decreased notably particularly due to roughly a 23% decline in both the construction and manufacturing sectors. In terms of services-producing industries, the wholesale and retail trade, health care and social assistance, and transportation and warehousing sectors all plummeted in April. Statistics Canada, did not release a breakdown for the month of May.

Going forward, the economy will likely gradually recover in the second half of this year as lockdown measures continue to ease and international borders begin to reopen. Moreover, strong fiscal stimulus and unprecedented monetary easing should also provide support to activity. Nevertheless, oil production cuts and tepid external demand will continue to weigh on the economy. A worsening outlook in the U.S. poses a significant downside risk to the outlook.

Free sample report

Access essential information in the shortest time possible. FocusEconomics provide hundreds of consensus forecast reports from the most reputable economic research authorities in the world.
Close Left Media Arrows Left Media Circles Right Media Arrows Right Media Circles Arrow Quote Wave Address Email Telephone Man in front of screen with line chart Document with bar chart and magnifying glass Application window with bar chart Target with arrow Line Chart Stopwatch Globe with arrows Document with bar chart in front of screen Bar chart with magnifying glass and dollar sign Lightbulb Document with bookmark Laptop with download icon Calendar Icon Nav Menu Arrow Arrow Right Long Icon Arrow Right Icon Chevron Right Icon Chevron Left Icon Briefcase Icon Linkedin In Icon Full Linkedin Icon Filter Facebook Linkedin Twitter Pinterest