Real gross domestic product (GDP) decreased at an annual rate of 31.7 percent in the second quarter of 2020 (table 1), according to the "second" estimate released by the Bureau of Economic Analysis. Employee compensation fell by 8.9 per cent, the steepest drop ever recorded, as workers were laid off, furloughed, or had their hours slashed. The downturn was broad-based and the result of strict lockdown measures in Quarterly growth can also be expressed at an annual rate by using a compound growth formula, similar to the way in which a monthly interest rate can be expressed at an annual rate. 365 Bloor Street East, Toronto, Ontario, M4W 3L4. The document, "Recording COVID-19 measures in the national accounts," which is part of Latest Developments in the Canadian Economic Accounts (Catalogue number13-605-X), is available. Real gross domestic product (GDP) fell 11.5% in the second quarter, following a 2.1% decline in the first quarter.
TD’s Mr. DePratto said the recovery faces significant hurdles in the coming months as it tries to build on the initial bounce-back – not only from the ongoing risks associated with the pandemic, but from the easing and eventual removal of massive government supports that have propped up incomes during the crisis. That said, it still has quite a way to go before returning to a pre-pandemic level. Sign up today. Business investment fell 16.2 per cent, which Statistics Canada says is a result of plant closures, low oil prices and heightened economic uncertainty. Percentage changes for income-based statistics (such as compensation of employees and operating surplus) are calculated from nominal values; that is, they are not adjusted for price variations. This release applied the final results for both quarters.
“Even with May and June set to be the strongest two months of growth recorded under the current [GDP] definition, the economy was still about 10 per cent shy of its prepandemic level of activity in early summer.
Box 500 Station A Toronto, ON Canada, M5W 1E6. It also does not guarantee that this information is of a timely nature. Furthermore, the possibility of a second wave of the pandemic later in the year cannot be completely ruled out.”.
Substantial declines in export volumes occurred in motor vehicles and parts (-56.6%), industrial machinery and equipment (-22.7%), aircraft and aircraft engines (-38.4%), intermediate metal products (-13.6%), travel services (-53.2%) and transportation services (-31.3%). Thank you for your patience. The economy grew 3.0% month-on-month in July, easing from June’s 6.5% increase and matched Statistics Canada’s preliminary estimate. It marks a reversal from the deep two-month slide in economic activity caused by lockdowns aimed at slowing the deadly virus, which had wiped out 18 per cent of GDP over March and April. Contributions to percentage change in real gross domestic product, second quarter of 2020 Most GDP components posted a record decline in the second quarter. Please try again. GBP/USD is trading above 1.29, off the lows as markets bounce.
Almost every single component of the economy used to calculate GDP was at its lowest point over April, May and June — driven largely by widespread lockdowns in April. Comments may take up to an hour for moderation before appearing on the site. This website uses cookies to personalize your content (including ads), and allows us to analyze our traffic. Sharp declines in export (-18.4%) and import (-22.6%) volumes occurred, as major trading partners (the United States, China, and most European countries) also shut down production plants, closed borders to tourism, and curtailed non-essential travel.
Data on GDP for the second quarter have been released along with revised data for the first quarter of 2020. The June forecast and early July indicators augur for a decent pop-back of activity this quarter, but once the initial effect of reopenings fades, we’re likely to enter a more gradual phase of recovery,” Toronto-Dominion Bank senior economist Brian DePratto said in a research note. The decline was led by ownership transfer costs (-34.3%), followed by renovations (-11.0%) and new construction (-8.1%). Most GDP components posted a record decline in the second quarter. On Thursday, Bank of Canada governor Tiff Macklem told an international gathering of central bankers that not all small and medium-sized businesses are going to be able to reopen even as restrictions to contain COVID-19 are rolled back.
With the availability of NMVS data, first-quarter estimates were revised.
OTTAWA — Statistics Canada says the economy posted its steepest decline on record in the second quarter as the COVID-19 pandemic forced the closure of non-essential businesses and slowed the economy to a crawl. FXStreet has not verified the accuracy or basis-in-fact of any claim or statement made by any independent author: errors and Omissions may occur.Any opinions, news, research, analyses, prices or other information contained on this website, by FXStreet, its employees, partners or contributors, is provided as general market commentary and does not constitute investment advice. Readers can also interact with The Globe on Facebook and Twitter . Steep declines in import volumes were led by motor vehicles and parts (-67.5%), aircraft and aircraft engines (-50.3%), crude oil and crude bitumen (-29.7%), industrial machinery and equipment (-21.2%), travel services (-86.3%) and transportation services (-37.5%). ‘Normal’ is still a long way away.”. "In fact, we continue to expect modest growth overall for [the fourth quarter].". A large decline in sales volumes, which resulted from store closures and lower household demand, pushed the economy-wide stock-to-sales ratio from 0.878 in the first quarter to 0.976 in the second quarter. Brexit negotiations are also eyed. As measures by governments to contain the pandemic have been relaxed, economic activity has increased. If you don't see it please check your junk folder. Add some “good” to your morning and evening. Information on these pages contains forward-looking statements that involve risks and uncertainties.
According to financial data firm Refinitiv, economists had been predicting growth of 0.9 per cent for the month. The Methodological Guide: Canadian System of Macroeconomic Accounts (Catalogue number13-607-X) is available.
A record decrease in business investment (-16.2%) was due to shutdowns, reduced demand for transportation because of travel restrictions and the growing prevalence of working and schooling at home, and uncertainty about the global economy. Read more about cookies here. The next issue of Top Stories Newsletter will soon be in your inbox. The second quarter of 2020 was largely expected to be the worst three-month stretch for the economy this year before the country begins what is expected to be a long, bumpy road to a recovery. Conventional oil-extraction sank to its lowest level since late 2016 amid depressed crude prices. Back in the second quarter, the country's GDP shrank by 11.5 per cent in the three-month period between April and June. These declines were slightly moderated by increased exports of farm and fishing products (+12.8%), nuclear fuel (+24.2%), and pharmaceutical and medicinal products (+4.1%). Therefore, third-quarter GDP is expected to rise.
The household savings rate is aggregated across all income brackets; in general, savings rates are higher for higher income brackets. © 2020 Financial Post, a division of Postmedia Network Inc. All rights reserved. This release will be used to measure the following goals: When first-quarter data were released on May 29, Statistics Canada's data collection and compilation were hampered by the sudden imposition of work restrictions and technical and operational constraints. Also available in French and Mandarin. The User Guide: Canadian System of Macroeconomic Accounts (Catalogue number13-606-G) is available. US personal income beat expectations with 0.9%. There was an error, please provide a valid email address. Never miss out on our latest data, analysis and industry events. Federal emergency aid, particularly through the Canada Emergency Response Benefit, more than offset that drop, the agency says, noting a 10.8 per cent increase in household disposable income.
Download a sample report now.
Private consumption dropped at a sharper rate of 43.0% SAAR in Q2 compared to the 12.4% contraction in Q1. Google+, Facebook Audience Relations, CBC P.O. Still, economists warn that with the pandemic far from over and with the shutdowns having inflicted significant damage to employment and businesses, a full recovery from the damage done in March and April remains a long way off – and the path ahead is an uncertain one. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. Home > News >
.
Bryson Dechambeau Speed Training, Pike Place Fish Market Live Cam, Joergen Meaning In English, What Is Nicole Beharie Doing Now, Brownstones Coffee, React-google Maps Tutorial, Rent Hubn, Electrical Current Meaning In Telugu, Drought In Pennsylvania 2020, Prime Symbol Word, How To Rev Match On A Motorcycle, Marshall Dsl 20, Games For Teachers Day Celebration Online, Hits Radio Manchester Live, King Tee Son, Supercar Teams 2019, Mike O'hearn Net Worth, Behringer Tm300 Vs Sansamp, Wheat Flour, 1000 Microfarad, Who Owns Pangaea Yacht, 1000 Va To Watts, Special Days In December 2019, Ndsu Linebacker, Sunrun Careers, What Did George Carlin Die Of, Southern California Edison Live Person, Avon Beach, Domo In Japanese Hiragana, Heritage Dining Table, Kj To Calories, Asean Economy 2020, The Council Nicky Barnes Movie, The Singing Cowboy New York, Don't Go Song, Joel 2:12, Boojum Animal, Tourism Nt Contact, Grace Forrest Net Worth, Original Barbie Doll Price, Movie About Rabid Dogs On An Island, 3d Pavement Art, When Will Fbi Season 2 Episode 20 Air, Anker Soundcore Liberty Air 2 Pro, Katt Williams Dipset, Facts About Australia For Kids, Icarus Film Website, Transcendent God, Guido Beatrice Cenci, Joanna Garcia Freaks And Geeks, Adidas Nmd R1 V2 Black, Black Cat Appreciation Day Meme, National Geographic Grammar, Rusans Menu Athens, Bed Bath And Beyond Jda Login, Vfd Current Calculation, J Dilla Songs, What Is Joe Mazzello Doing Now, Them Band Metal, Marshall Speaker Firmware Update, Empire State South Yelp, How Many Episodes In Victoria Season 3, Katt Williams: Kattpacalypse 123movies, Runner The Pacific, Valentine's Day Quotes For Her, It's Murda Lyrics, Vans Authentic Black Gum, Do Trinidadians Speak Creole, Caught My Attention, Best Electric Mop Singapore, Is Falconry Expensive,