The Canadian economy is projected to contract 12 percent in the second quarter despite a modest rebound in May, the country's statistics agency said in a report on Thursday
TORONTO (Pakistan Point News / Sputnik - 31st July, 2020) The Canadian economy is projected to contract 12 percent in the second quarter despite a modest rebound in May, the country's statistics agency said in a report on Thursday.
"This flash estimate points to an approximate 12% decline in real GDP in the second quarter of 2020," Statistics Canada said.
There are signs that the economy is rebounding after posting declines of 7.2% in March and 11.6% in April because of the coronavirus-induced shutdown. In May, the economy grew by 4.5 percent and, according to the state agency, preliminary data indicates that GDP will increase by 5% in June.
Despite the uptick in May, the economy remains 15% off from pre-pandemic levels, the agency noted.
In all, 17 out of 20 industry sectors posted positive growth in May. The increased economic output was led by the construction (+17.6%), retail (+16.4%) and manufacturing (+7.4), sectors that were brought to a standstill at the height of the pandemic.
However, sectors including, public administration, arts, entertainment and recreation and management services continue to sputter.
The Canadian economy contracted by 8.2 percent due to the measures imposed to fight the deadly disease in the first quarter of 2020.
