Canada's GDP sees worst showing in Q1 since 2009Christian Fernsby ▼ | May 30, 2020
Canada's national statistical agency said on Friday that the country's economy saw the worst quarterly performance since 2009 due to the coronavirus pandemic.
Quarterly performance Canada factory
Topics: Canada GDP
The downturn in GDP, the sharpest since the first quarter of 2009, reflects measures rolled out in March to contain the coronavirus pandemic, such as closures of school and non-essential businesses, border shutdowns and travel restrictions, as well as events earlier in the quarter, mainly the Ontario teachers' strike and rail blockades in February.
The country's GDP fell 7.2 percent in March from February, the most severe month-on-month fall, while annualized growth for the first quarter decreased by 8.2 percent, the largest since the depths of the Great Recession.
Household spending was reduced by 2.3 percent in the first quarter of 2020, the steepest quarterly drop ever recorded. Spending reductions were influenced by substantial job losses, income uncertainty and limited opportunities to spend because of the mandatory closure of non-essential retail stores, restaurants and services, and restrictions on travel and tourism activities.
Real GDP plummeted by a record 11 percent in April from March as most sections of the economy were shut down to fight the coronavirus outbreak.
The March and April falls are likely to be the largest consecutive monthly declines on record, said the country's statistics agency. ■