The canadian GDP grew 4.5 % in may

Malgré les deux mois de croissance après deux mois de lectures négatives, l'estimation préliminaire de Statistique Canada indique que la production économique s'est contractée de 12 % au deuxième trimestre.

Despite two months of growth after two months of reading the negative, the preliminary estimate of Statistics Canada reports that the economic output, contracted by 12 % in the second quarter.

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July 31, 2020 18h16

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The canadian GDP grew 4.5 % in may

The canadian Press

OTTAWA — The gross domestic product (GDP) increased 4.5 % in may, while businesses have started to reopen after the easing of restrictions imposed in march and April to combat the pandemic of COVID-19, reported Friday by Statistics Canada.

Economists were expecting on average an increase of 3.5 % of gross domestic product for the month, according to forecasts compiled by the firm of financial data Refinitiv.

The agency indicates that the rebounds may have been observed in a number of industries with the easing of restrictions on the COVID-19, including the retail trade, which registered an increase of 16.4 %, which represents its strongest monthly increase since the beginning of the collection of this data, in 1961.

Sales of motor vehicles are the main responsible for the growth of the retail sector. By excluding them, growth would have been 11.4 %, said Statistics Canada.

Information interim agency indicate that real GDP increased by about 5 % in June.

Despite two months of growth after two months of reading the negative, the preliminary estimate of Statistics Canada reports that the economic output, contracted by 12 % in the second quarter.

The data for June and the second quarter will be finalized at the end of the next month.

The economist Royce Mendes, CIBC said in a note that a decrease of 12 % in the second quarter would be the largest decline ever recorded, even if such a dip was expected.

In its most recent economic outlook, the Bank of Canada argued that the second quarter of 2020 would be worse than the first, providing for a quarterly decline of 14.6% to the GDP.

All in all, the central bank indicated expect an economic contraction of 7.8 % this year, warning that after an immediate relief with the relaxation of restrictions, the recovery would be long and bumpy, and that some businesses and jobs would not survive the recession.

According to Statistics Canada, the economic activity remained 15% below its level prior to the pandemic, despite the gains registered in may.

Le Soleil

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