The Canadian economy dropped in April, albeit less than predicted, according to data released on Wednesday. It was the first drop in GDP in eleven months, according to analysts at the National Bank of Canada. They anticipate a somewhat positive second quarter.
“Given more stringent sanitary controls and a delayed start to the vaccination campaign, Canada’s GDP fell for the first time in April after 11 months of increase (which has since become one of the most successful in the world). Despite the decrease, total output is still only 1.2 percent lower than it was before the outbreak. It should come as no surprise that the industries most negatively impacted by social distancing policies experienced the sharpest reductions.”
“The monthly increase for mining/quarrying/oil&gas showed strong worldwide demand for commodities. As April sanitary measures spilled over into May, Statistics Canada’s preliminary forecast for a negative May print will almost certainly come true.”
“While the second quarter appears to be on pace for a fall, nationwide reopenings and the relaxation of the most stringent sanitary procedures (almost 70% of the population has been at least partially vaccinated) could allow the month of June to offset previous declines. As a result, we still expect growth to be somewhat positive in the second quarter.”/n
