Canada's GDP loses record 38.7% in Q2



08/31/2020 3:26 AM


In the second quarter of 2020, the Canadian economy contracted by a record 11.5% from the previous quarter and entered a recession due to the coronavirus, the country's statistics office said. In annual terms, Canada's GDP in April-June fell by 38.7%, and this is also a record.



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Analysts predicted a 12% contraction in the economy qoq, Trading Economics reminds. In the first quarter, GDP fell by 2.1%.

Experts on average predicted an annual decline in the economy in the II quarter by 39.6%. In the first quarter, the economy contracted by 8.2% in annual terms.

Household spending plunged in the second quarter by a record 13.1% qoq amid job losses and limited spending opportunities due to store closures and travel restrictions.

Business investments in fixed assets decreased by 16.2%, the maximum since the beginning of the indicator. Government spending fell 2.7% after cutting 0.3% in the first quarter.

Exports collapsed by 18.4%, imports - by 22.6% amid the fall in the economies of the country's largest trading partners in connection with measures aimed at combating the pandemic.

source: tradingeconomics.com


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