Canada’s Economy Rebounds, Grows in 2nd Quarter
The Canadian economy most likely expanded by 0.7% in June as businesses reopened after shutdowns imposed to help fight the coronavirus pandemic, Statistics Canada said on Friday.
Real gross domestic product (GDP) contracted 0.3% in May, following a 0.5% decline in April, and total economic activity was approximately 2% below February 2020’s pre-pandemic level, the federal agency said.
Overall, 12 of 20 industrial sectors were down as both services-producing (-0.2%) and goods-producing industries (-0.4%) contracted.
Preliminary information indicates an approximate 0.7% increase in real GDP for June. Growth in retail trade and accommodation and food services was influenced by the easing of public health measures in many provinces in June. There were also gains in manufacturing and mining, quarrying, and oil and gas extraction, while construction and wholesale trade contracted. This advance estimate points to an approximate 0.6% increase in real GDP in the second quarter of 2021. Because of their preliminary nature, these estimates will be revised on August 31, with the release of the official GDP data for the June reference month and the second quarter of 2021.