With the economy in lockdown during March and April, Canada’s GDP dropped a record -18.2% due to the COVID-19 pandemic. Although not surprising, when compared to the Spanish Flu period and an economy that was much smaller in 1919, the impact of shutting down a consumer driven economy is stark. The good news is that while there are challenges to restarting carefully, it appears Canada has begun to recover, although many economists expect it to be a slower process.
Enjoy the full breakdown from our partners at NBF Economics HERE.
Our partners at National Bank Financial Economics offer a week in review for the actions taken by the Central Bank to keep you informed and advised.
“This adjustment marks 100 basis points of easing provided by the Bank of Canada in less than 10 days—a record for the central bank. The unscheduled rate decision was classified as ‘a proactive measure taken in light of the negative shocks to Canada’s economy arising from the COVID-19 pandemic and the recent sharp drop in oil prices’. The Bank noted that “the coronavirus is having serious consequences for Canadian families, and for Canada’s economy.”National Bank Financial March 13th, 2020
Recent fiscal and momentary strategies have been implemented by the Canadian government (Source: CTV March 18th, 2020). Watch the video here.
Please contact your Hampton Securities Investment Advisor if you have any questions or concerns.