Canada's Economy Shrank 8.2% In First Quarter Of 2020 - Report

The Canadian economy contracted by 8.2 percent in the first quarter of 2020 due to the measures imposed to fight the novel coronavirus disease (COVID-19), Statistics Canada said in their Gross Domestic Product, Income and Expenditure First Quarter Report released on Friday

TORONTO (Pakistan Point News / Sputnik - 29th May, 2020) The Canadian economy contracted by 8.2 percent in the first quarter of 2020 due to the measures imposed to fight the novel coronavirus disease (COVID-19), Statistics Canada said in their Gross Domestic Product, Income and Expenditure First Quarter Report released on Friday.

"Real gross domestic product (GDP) fell 2.1 percent in the first quarter, owing to reduced household spending and widespread shutdowns of non-essential businesses in March, in response to the COVID-19 pandemic," the report said. "Expressed at an annualized rate, real GDP fell 8.2 percent in the first quarter."

The report noted that, by comparison, the US economy contracted by 5 percent during the same period.

Household spending in Canada dropped by a record 2.3 percent as residents have suffered through some of the worst job losses in history.� Earlier in May, the Federal statistics agency revealed that the Canadian economy shed nearly 2 million jobs in April pushing the unemployment rate to 13 percent amid the coronavirus-induced economic devastation.

The report said the GDP contraction is the sharpest since the first quarter of 2009, and in addition to the ongoing pandemic reflected earlier trade disputes in Ontario and February's pan-Canadian rail blockades in support of indigenous rights.