Loading articles...

GDP sees historic drop in April, falls 11.6 per cent amid coronavirus shutdowns

Last Updated Jun 30, 2020 at 8:30 am MDT

Statistics Canada building and signs are pictured in Ottawa on Wednesday, July 3, 2019. THE CANADIAN PRESS/Sean Kilpatrick
Summary

GDP saw an 11.6 per cent decline in April amid coronavirus shutdowns


Statistics Canada says the economy saw its largest monthly drop on record in April


All 20 sectors decreased in April, Statistics Canada notes


OTTAWA (NEWS 1130) – Gross domestic product took a massive hit in April, when COVID-19 shutdowns were in place for a full month.

Statistics Canada says the GDP shrank 11.6 per cent compared to March, which was down 7.5 per cent from February. This is the largest monthly decline since the agency started tracking the GDP in 1961.

However, Statistics Canada says its initial flash estimate for May points to a growth of three per cent, which will be revised and finalized at the end of July.

The median of economists’ expectations was for a 12.2 per cent decrease, while an earlier Statistics Canada flash estimate was for a drop of 11 per cent.

“The economy was 18.2% below its February level, the month before the COVID-19 measures began,” Statistics Canada notes.

It says all 20 sectors decreased in April.

Manufacturing was down 22.5 per cent in April as many factories either shuttered or greatly reduced capacity in line with public health measures to slow the spread of COVID-19.

The output of the accommodation and food services sector dropped 42.4 per cent in April, as customers replaced eating out with staying in, hitting a sector that saw a 37.1 per cent decline in March.

Richard Dettman will have more in Business at :26 and :56.