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Canada's GDP in the II quarter collapses by a record 38.7%


Août, 28 2020
watermark Economic news

According to Statistics Canada, the country's economy contracted by a record 11.5% in the second quarter compared to the previous quarter and entered a recession due to the coronavirus. In annual terms, GDP in April-June fell by 38.7%, which also became a record figure.


Analysts predicted a 12% contraction in the economy qoq and 39.6% y/y. In the first quarter, the Canadian economy contracted 2.1% m/m and 8.2% y/y.


Household spending plunged by a record 13.1% quarter-on-quarter amid job losses and limited spending opportunities due to store closures and travel restrictions.


Business investments in fixed assets decreased by 16.2%, the maximum since the beginning of the indicator. Government spending fell 2.7% after cutting 0.3% in the first quarter. Exports fell by 18.4%, imports – by 22.6%.


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Foreign exchange trading carries a high risk of losing money due to leverage and may not be suitable for all investors. Before deciding to invest your money, you should carefully consider all the features associated with Forex, as well as your investment objectives, level of experience, and risk tolerance.