Canada’s economic system continued its restoration in July from the primary wave of COVID-19, with the nation’s gross home product increasing by three per cent.
Statistics Canada reported Wednesday that all 20 sectors of the economic system grew as companies continued to reopen and tried to get again to some sense of regular after lockdowns in March and April.
Output in agriculture, utilities, finance and insurance coverage companies, in addition to actual property rental and leasing corporations, clawed again to the place it was earlier than the pandemic struck. Retail commerce companies completed the identical feat the month earlier than, in June. However regardless of July’s progress, all different kinds of companies nonetheless have but to get again to their earlier highs.
The largest expansions within the month had been in lodges/eating places (up 20.1) and humanities/leisure/recreation (up 14 per cent), however these figures come off a really low base and are nonetheless dealing with the deepest stoop versus year-ago ranges, Financial institution of Montreal economist Benjamin Reitzes mentioned of the numbers.
All in all, GDP was six per cent beneath February’s stage, Statistics Canada mentioned.
The three per cent acquire was consistent with what economists had been anticipating. It was about half as a lot because the 6.5 per cent enhance seen in June.
Whereas StatsCan continues to be calculating the ultimate numbers, its early projection for August exhibits an growth of only one per cent, which means that Canada’s financial restoration is operating out of steam because it seems a second wave of the virus is hitting some elements of the nation.
TD Financial institution economist Sri Thanabalasingam mentioned based mostly on the July numbers, these fears are nicely based.
“Slowing and uneven progress are indications that the Canadian economic system is transitioning from the rebound part to a tougher stage of the restoration,” he mentioned.
“Even with out restrictions, customers and companies could rein in spending exercise in response to rising caseloads. The second wave is now upon us, and the course of the restoration will rely on our success in containing it.”