The Canadian economy contracted by 11.6% in April. The consensus forecast was for a 13% drop in GDP so the result, as bad as it was, is better than expected. Manufacturing, construction and retail were hardest hit as Covid measures were in place for the entire month. Overall, the economy is now 18% smaller than it was in February, before Covid measures were put in place. On the bright side, Statistics Canada’s preliminary estimate for May is a rebound of 3% in economic activity as the economy slowly opens up. This morning, North American equity markets are indicated to open slightly down and oil is down 2%. The Canadian dollar is down by about 0.2% as we head into the Canada day holiday tomorrow.
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