Canadian GDP Tumbled Further in April

Canadian GDP posted the biggest contraction even in April

Written by: Skerdian Meta • Wednesday, July 1, 2020 • 1 min read

• Last updated: Tuesday, June 30, 2020

The Canadian economy was holding up well last year, while he rest of the globe was weakening due to the US-China trade war. But, the coronavirus came and ruined everything for everyone. In March the economy contracted by 7.2%, as last month’;s report showed, but it was revised lower today to -7.5%. In April, the contraction was deeper, as the GDP became 11.6% smaller in just one month. That’s the biggest contraction ever.

Canada April 2020 GDP Data

April GDP -11.6% vs -12.2% m/m expected
Worst month on record
March was -7.2 m/m (revised to -7.5%)
GDP contracts 17.1% y/y vs -17.1% expected
Through March, GDP contracted 5.8% y/y
Flash May estimate +3.0% m/m
Manufacturing sector -22.5% in April
Construction sector -22.9%
Retail trade -22.9%
Transportation and warehousing -23.1%
Accommodation and food services sector -42.4% in April and -64% from Feb

The headline beat is matched by the prior revision and that put the y/y in-line with expectations. In any case, a decade of GDP growth has been wiped out in two months. The Canadian dollar took the report in stride and was largely unchanged.

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Skerdian Meta

Lead Analyst

Skerdian Meta Lead Analyst. Skerdian is a professional Forex trader and a market analyst. He has been actively engaged in market analysis for the past 11 years. Before becoming our head analyst, Skerdian served as a trader and market analyst in Saxo Bank's local branch, Aksioner. Skerdian specialized in experimenting with developing models and hands-on trading. Skerdian has a masters degree in finance and investment.