Saturday, July 12, 2025

Latest

Canada’s GDP Rose by 3% in July, Recovery Showing Signs of Slowdown

Many restrictions were lifted across Canada during the summer, prompting consumers to return to the market and industries to increase output. As a result, Canada’s GDP levels rose by 3% in July, inching closer and closer to pre-pandemic levels.

According to latest Statistics Canada data, Canada’s gross domestic product increased by 3% between June and July, suggesting that the economy is on a sufficient path towards recovery. Although the momentum has slowed from June’s growth levels of 6.5%, economists had anticipated GDP levels to only rise by 2.9% in July; thus the incoming figures are certainly hitting a positive note.

Since the beginning of the pandemic, Canada’s GDP levels fell by a staggering 38.7%, amounting to a 8.2% drop in the first quarter. However, according to Bank of Montreal economist Benjamin Reitzes, third quarter GDP is expected to rebound by an annualized 48% due to the output momentum of the past several months. Statistics Canada’s flash estimate for August is anticipating output to recuperate to 95% of February’s levels. In comparison, April GDP levels were approximately 18% below pre-pandemic figures.

Indeed, Canada’s overall GDP still remains 5% below July 2019 levels, but not all industries experienced the same momentum in recovery. The arts, entertainment and recreation sector remains 52.1% below last year’s GDP levels, followed by the accommodation and food sector which is also still 33% lower. Conversely, the cannabis sector has risen by 18.4% compared to July 2019, while growth in the real estate and rental and leasing sector appears to coincide with previous data pointing to a high demand for housing in Canada.

Although the latest output figures are certainly optimistic, the likelihood of the momentum carrying into the remainder of the year is declining. Given the recent spike in COVID-19 cases across the country, predominantly in some of Canada’s largest provinces, it has prompted officials to begin re-imposing restrictions. In fact, Ontario has reached a grim record-number of new daily cases, where health officials are projected daily cases to reach 1,000 come October. This has prompted Premier Doug Ford to consider reverting back to stage two reopening plans.


Information for this briefing was found via Statistics Canada and CBC News. 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

Mergers Set the Stage for Uranium’s Growth Cycle | Forum-Baselode Merger

The Goal is Gold Production as Soon as Possible! | Gordon Robb – ESGOLD Corp.

Snowline Gold: The Multi Billion Dollar Valley PEA

Recommended

First Majestic Produces 7.9 Silver Equivalent Ounces In Q2, Lifts Production Guidance

Antimony Resources Drills 4.17% Antimony Over 7.4 Metres At Bald Hill

Related News

Swing and Miss: Canada’s GDP Falls Short of Expectations as Exports Plummet

Canada’s economy fell short of forecasts last quarter, as exports slumped amid continued supply constraints....

Thursday, June 2, 2022, 10:24:00 AM

Canada’s Economy Expanded 1.4% In the First Quarter Amid Strong Housing Boom

Canada’s economy continued on its rebound trajectory in the first quarter, as a surge in...

Thursday, June 3, 2021, 10:42:00 AM

Fed Tracker Signals Sharpest US Economic Decline Since COVID Crisis

The US economy under the Trump administration could contract by 2.8% in the first quarter...

Saturday, March 8, 2025, 07:36:00 AM

Atlanta Fed’s Econometric Model Predicting 34.9% Drop in GDP Level For Q2 2020

The Federal Reserve Bank of Atlanta runs an econometric model called GDPNow, which produces a...

Tuesday, May 12, 2020, 03:49:00 PM

Canada’s Economy Recovers Nearly Half of Lost Output Since Pandemic, GDP Rises by 4.5% in May

As much of Canada has been making efforts to recover from the devastation brought on...

Friday, July 31, 2020, 03:31:08 PM