National

Q2 economy posts record drop

Canadian economy suffers worst plunge on record in Q2

STATISTICS CANADA SAYS the economy posted its steepest decline on record in the second quarter as the Covid-19 pandemic forced the closure of non-essential businesses and slowed the economy to a crawl.

Gross domestic product plunged by an annualized 38.7 per cent in the first three months through June, adding to an 8.2 per cent drop in the first quarter, Statistics Canada said Friday in Ottawa. Economists had anticipated a 40 per cent decline.

The second quarter will go down as by far the worst on record. However, the collapse largely reflects losses during one month — April. Separate monthly GDP data released on Friday added to evidence that a sharp recovery has taken place since then, with growth of three per cent in July and 6.5 per cent in June.

Nonetheless, Canada’s economy isn’t expected to fully make up the losses until 2022 in what’s anticipated to be a long and uneven recovery.

Recent Posts

London Inc. Weekly

London Inc. Weekly: A summary of regional business news from the past week

3 days ago

Dispatch

Dispatch: A summary of recent business appointments and announcements, plus upcoming events for the week ahead

3 days ago

Price check

Price check: High- and low-priced real estate listings around town this week

5 days ago

Commercial Activity: May 28, 2025

A summary of recent commercial real estate activity in London

5 days ago

Home of the Week: 173 Langarth Street East

173 Langarth Street East: $1,399,999 for a custom-designed modern home in Wortley Village

5 days ago

Food Basics celebrates 30th anniversary by expanding in London, Ontario

Food Basics marks their 30th anniversary with the opening of its latest store ― its 147th location in Ontario ―…

6 days ago