Tuesday, August 5, 2025

Canada Sees GDP Fall 11.5% In Second Quarter

It’s been reported by Statistics Canada this morning that the second quarter saw real GDP fall by 11.5% as a result of the ongoing coronavirus pandemic. Worst yet, on an annualized basis the tumble amounted to a 38.7% decline in GDP, as compared to 31.7% posted by the US for the same period. Lockdowns throughout the country for much of April and May, combined with the beginnings of re-openings in June are largely to blame for the poor GDP print.

The decline was the worst on record, with records for such data going back as far as 1961. The decline indicated a sharp decline in household spending, to the tune 13.1%, consisting of goods falling 8.4%, while services fell an astounding 16.7%. Business investment meanwhile fell 16.2%, while exports and imports fell 18.4% and 22.6% respectively.

Declines were felt in many areas across the board, with items such as new passenger cars seeing a 37.8% decline in consumption, accommodation services falling 45.6% and transportation services falling an astounding 79.2%.

On a more personal basis, compensation of employees fell by 8.9% as a result of numerous operations being forced to shutter their doors for months on end, marking the steepest drop ever recorded. The only bright side to this, is that household savings rates rose to 28.2% from 7.6% last quarter. Disposable income also rose by 10.8% as a result of the numerous government programs offered to the public.


Information for this briefing was found via Statistics Canada. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

Video Articles

San Dimas: First Majestic Silver’s Sleeper Asset

New Gold Q2 Earnings: Record Free Cash Flow

STLLR Gold: The Tower Gold PEA

Recommended

Tsunami Warnings Spread As Largest Quake Since 2011 Hits Russia

Northern Superior Intersects 1.75 g/t Gold Over 65.0 Metres At Philibert

Related News

Canada’s Natural Resource Sector Grows 0.3% in the Third Quarter

Real GDP in the natural resources sector rose by 0.3% in the third quarter of...

Monday, January 18, 2021, 10:34:00 AM

Canada’s Parliamentary Budget Office Releases Potential Costs of a Universal Basic Income

As the economy slowly begins to climb out from April’s rock bottom, many Canadians continue...

Wednesday, July 8, 2020, 06:58:00 PM

Interest Rate Aftermath: Canada’s Economy Unexpectedly Contracts in Second Quarter

Canada’s real GDP in the second quarter remained largely stagnant, showcasing the tangible impact of...

Sunday, September 3, 2023, 01:49:00 PM

Pierre Poilievre’s Conservative Party Breaks Record for Fundraising Dollars in Q4 2022

The Conservative Party of Canada likes its new leader and it shows. The party was...

Thursday, February 2, 2023, 07:23:52 AM

Ekos Poll: Justin Trudeau Losing Support From Canadians Under 50

A new Ekos poll shows that the Liberals are losing ground to the Conservative party,...

Saturday, May 21, 2022, 11:05:00 AM