Coronavirus Impact: Canadian GDP down by 11 percent

Source :Sify
Author :Sify
Last Updated: Sat, May 30th, 2020, 16:36:49hrs

Ottawa: Businesses nearly shutdown, industries at the cusp of a shutdown, empty streets, only-online schools and colleges owing to the Coronavirus scare have dealt a major blow to the Canadian economy.  

Canadian authorities on Friday were quoted as saying that growth for the month of April slipped by a whopping 11 percent from March.  

The numbers for March were equally depressing - down by 7.2 percent from February. Two quarters of decline on the trot have made the Canadian economy significantly weaker.  

Canada's first-quarter growth weakened by 8.2 percent in annualized terms. This was the lowest ever since 8.7 percent first-quarter decline in 2009 during the great recession.  

Also Read: In-Depth Coronavirus Coverage

With this, numbers for the secon quarter is expected to be equally worse. In recent weeks, most of Canada's 10 provinces have taken measures to reopen slowly, however experts are still debating on the pros and cons of opening the economy.  

The dip in economy corresponds to household savings that have also dropped. The first-quarter household spending saw a decline of 2.3 percent with buyers refraining from visiting car show-rooms and even clothing & footwear stores.

Also Read: In-Depth Coronavirus Coverage

The economic crash is in line with the Canadian currency's movements. The Canadian dollar in recent times has weakened to C$1.3778 or $72.60 against the US dollar.