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.

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