Canada’s economic system shrank by 11.6 per cent in April, the largest plunge on document, following March’s contraction of 7.5 per cent as COVID-19 lockdowns started.
Statistics Canada reported Tuesday that every one 20 classes the information company tracks have been decrease, and so they added as much as the largest month-to-month plunge since record-keeping started in 1961.
April’s plunge means the economic system on the finish of April had misplaced nearly one fifth of the output it produced on the finish of February.
Although record-setting, April’s plunge was truly not as deep because the 13 per cent contraction that economists have been bracing for.
And whereas the numbers actually underlined the bleak state of the economic system within the depths of COVID-19, the information company did trace at a lightweight on the finish of the tunnel, with preliminary GDP numbers for Might projecting a slight uptick after bottoming out in March and April.
“The excellent news, reminiscent of it’s, is that there are many indicators that April will mark the nadir, and StatsCan’s first estimate for Might is a average three per cent rebound in GDP from the depths,” Financial institution of Montreal economist Doug Porter mentioned of the numbers.
“We count on an even bigger bounce in June because the economic system re-opened extra absolutely.”