OTTAWA | real GDP annualized rate of Canada dropped 8.2% in the first quarter, the worst result since the last financial crisis, according to data released Friday by Statistics Canada.
It is the decline in the GDP the more pronounced since the one registered in the first quarter of 2009, noted the federal agency, claiming that it was due to the blockade of the railway in February, the strike of the teaching staff in Ontario and, especially, the measures introduced in march to contain the pandemic COVID-19.
Among others, the governments in the countries have announced the closure of schools and businesses, non-essential the closure of the canada-u.s. border and travel restrictions.
Moreover, Statistics Canada has argued on Friday that the gross domestic product (GDP) fell from 7.2% in march compared to February, while the agency estimated the decline at about 9 % in April.
Essentially, the institution notes that household spending declined 2.3 % in the first quarter of 2020, the largest quarterly decline ever recorded.
“This reduction in expenditures is attributable in part to job losses, substantial uncertainty attached to the income and with limited opportunities to spend in view of the closure in the obligatory retail stores, restaurants and non-essential services, and restrictions of travel and tourism activities”, a-t was specified.
In addition, the final consumption expenditure of public administrations have also declined by 1 % due to the closure of schools and reduction of government activities.
Furthermore, exports (3.0 %) and imports (2.8 %) were also decreased, partly due to the measures taken by Canada’s major trading partners, including the United States, China and most countries in Europe.