Canada went into recession in the first quarter of 2020, with a peak in February, suggests the C. D. Howe Institute in a report released on Friday.
Based on preliminary data, the economists of this group of economic thinking and social note that the real GDP declined by about 9% in march compared to February, a decline of 2.6% for the first quarter of 2020.
In addition, the data on employment from Statistics Canada reported a drop of 1.5 % of the total employment in the first quarter, with a decline of 5.3 % just in march.
Technically, a recession occurs when the economy undergoes a contraction during two consecutive quarters.
The economists of the Institute, based in Toronto define recession as “a decline is pronounced, persistent and pervasive to the overall economic activity”. They consider the GDP and employment as the key measures of economic activity.
“The magnitude of the contraction makes it extremely unlikely that future adjustments will void the conclusion of a significant decline in economic activity in the first quarter,” says the Institute in a press release.