Canadian economy declines in April and May amid COVID-19 closures
- Canada's real GDP decreased 0.3% in April from March, beating analyst estimates of a decline of 0.8%, while May GDP was most likely down 0.3%, Statistics Canada said. The May number is a preliminary estimate.
OTTAWA: Canada's economy likely contracted again in May, following its first decline in a year in April, amid lockdowns to slow a harsh third wave of coronavirus infections, data from Statistics Canada showed on Wednesday.
Canada's real GDP decreased 0.3% in April from March, beating analyst estimates of a decline of 0.8%, while May GDP was most likely down 0.3%, Statistics Canada said. The May number is a preliminary estimate.
Retail trade fell in April and was likely down again in May, Statscan said, as many non-essential businesses were shuttered to help curb the spread of COVID-19.
Real estate fell in April for the first time since October 2020, as some of the frenzy in Canada's housing market eased. Real estate also contributed to May's expected decline.
Statscan said total economic activity remains at about 1% below pre-pandemic levels.
The Canadian dollar steadied at about near 1.2380 per US dollar, or 80.78 US cents, up 0.2% on the day.
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