Canada’s economy shrank at fastest pace on record in Q2, but may have turned the corner in June

Canada’s economy shrank at the fastest pace on record in the second quarter, as consumer spending, business investment, imports and exports all dried up because of COVID-19.

Statistics Canada reported Friday that the country’s gross domestic product shrank by 11.5 per cent in the three-month period between April and June. That’s a 38.7 per cent pace of contraction for the year as a whole, far and away the steepest and fastest decline dating back to 1961. 

The numbers show in stark relief just how pronounced the slowdown caused by the sudden shock of COVID-19 was. But they also seem to suggest that a corner has been turned, and a rebound back up may be equally swift.

While the quarterly numbers were the worst in almost 60 years, the GDP numbers for June specifically make that month the biggest bounceback on record, too.

June’s GDP grew by 6.5 per cent from May’s level as provinces reopened their economies and consumers and businesses started spending again.

More to come

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