Economic Growth in Canada
GDP MoM (Canada)
April Should Get Worse, After the 7.2% Contraction in March
Starts Tuesday, June 30, 2020 at 12:30
Updated Tuesday, June 23, 2020
The economic growth used to be pretty solid in Canada during Spring and Summer last year. The report released in July showed that the GDP increased by 0.5% a month, but August's report showed a steep dovish turnaround as growth fell flat to 0.0%, lower than expectations which were for a 0.1% increase. We saw some really weak inflation and retail sales numbers from Canada for August, but the GDP increased by 0.1% nonetheless. Since last September, the economy has gone downhill as we have seen three contractions in the last four months until December. There was a jump in October, but the decline resumed in November and Canada closed last year with GDP in contraction. In January it suddenly made a reversal and the GDP jumped 0.3% higher, but it contracted by 0.1% again in February, which was revised lower to -0.2%. Although, we saw a 0.5% jump in March and in April we saw another positive reading as the GDP expanded by 0.3%. In May, growth was expected to be at 0.1% but it beat expectations and came at 0.2%. For June, the economy expanded by 0.2%, but it fell flat in July. Although, growth was expected to had grown by 0.2% in August, it grew by 0.1% instead, where it stayed for September, but in October it contracted by 0.1%. Although, the Canadian economy returned to expansion again, growing by 0.1% in November, while in December we saw a 0.3% increase. In January the GDP fell to 0.1% and it fell flat at 0.0% in February. The GDP contracted by 7.2% in March due to the lock-downs, but the contraction should be more severe for April. Follow us for the live coverage of this event by experienced analysts.
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About GDP MoM (Canada)
Released monthly by Statistics Canada, Canadian GDP (MoM) is a primary metric facing economic output. It is a valuation of all goods and services produced domestically over the previous calendar month.GDP is a crucial measurement of Canada’s economic prowess. Heavily dependent upon the energy, agricultural, and services sectors, Canada is a top 20 global economic power. Short-term trends in GDP (MoM) impact the pricing of the CAD greatly. Growing GDP numbers that are adjusted for inflation are interpreted as bullish, while lagging figures are bearish.