Canadian economy sees record drop in Q2

Canada’s gross domestic product (GDP) fell by a record 11.5 per cent in the second quarter this year, following a 2.1 per cent decline in the first quarter due to the Covid-19 pandemic.

In a report on Friday, Statistics Canada said that almost every single component of the economy was at its lowest point in the second quarter as the pandemic forced the country to carry out widespread shutdowns of non-essential businesses, border closures, and restrictions on travel and tourism, reports Xinhua news agency.

The second quarter decline, the steepest since quarterly data were first recorded in 1961, reflected sharp decreases in household spending, business investment, and international trade.

Final domestic demand dropped 11.1 per cent, continuing the 1.9 per cent drop in the first quarter.

Expressed at an annualized rate, the real GDP plunged 38.7 per cent in the second quarter.

The second quarter is largely expected to be the worst in 2020 for the Canadian economy before the country begins what is expected to be a long, bumpy road to recovery.

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