Data from Statistics Canada suggests Canada’s economy appears to have suffered its worst year on record. (THE CANADIAN PRESS/Justin Tang)

Data from Statistics Canada suggests Canada’s economy appears to have suffered its worst year on record. (THE CANADIAN PRESS/Justin Tang)

Canada’s economy likely suffered its worst year on record, shrank by 5%: StatsCan

The flash estimate is worse than 1982 when the economy contracted by 3.2 per cent

Canada’s economy appears to have suffered its worst year on record as the national statistics agency’s preliminary estimate showed a contraction of 5.1 per cent in 2020.

The flash estimate, which has yet to be finalized, is worse than 1982 when the economy contracted by 3.2 per cent, which was the worst over the course of six decades of comparable data.

Not even at the height of the global financial crisis just over a decade ago were things as bad as they were last year when the real gross domestic product fell 2.9 per cent in 2009.

Statistics Canada said it expects to finalize the numbers in the coming weeks.

The drop is largely due to steep declines in March and April as large swaths of the economy were shut down during the first wave of the COVID-19 pandemic.

Since then, economic activity has slowly and steadily grown.

Statistics Canada said Friday the economy grew 0.7 per cent in November, marking the seventh straight month of gains after the steep drops in the spring. The growth followed a 0.4 per cent increase in October.

It also came with the backdrop of positive news about vaccines and a presidential election south of the border where Joe Biden defeated Donald Trump.

Stock market activity increased as market sentiments improved, as the finance and insurance sector grew by 1.3 per cent in November.

READ MORE: Canadian economy lost 63,000 jobs in Dec., first decline since April

Mining saw an increase in demand for things like potash and non-metallic minerals. Likewise, the oil and gas sector saw gains as facilities in Alberta restarted production.

The retail sector was up by 1.1 per cent in November, including growth of 6.1 per cent in the food and beverage subsector that Statistics Canada attributes to higher activity in grocery stores, along with a boost in business for beer, wine and liquor stores.

The agency also said its preliminary estimate for December shows growth of 0.3 per cent, even as much of the country headed into heavy restrictions to slow the spread of COVID-19 and jobs were lost.

The preliminary estimate for the fourth quarter shows an annualized growth rate of 7.8 per cent.

CIBC senior economist Royce Mendes wrote that the figures suggest the economy healed more than expected in the final months of 2020.

“That said, the economy will only be able to outrun the second wave of the virus for so long,” Mendes says in a note.

“With unemployment rising in December and public health officials being forced to tighten restrictions even further in January, the situation likely became more dire in the new year.”

Canada

Just Posted

Okanagan Lake (File photo)
Thompson-Okanagan ready to welcome back tourists

The Thompson-Okanagan Tourism Association expects this summer to be a busy one

Aerial view of a wildfire at 16 Mile, 11 kilometres northwest of Cache Creek, that started on the afternoon of June 15. (Photo credit: BC Wildfire Service)
Wildfire at 16 Mile now being held

Wildfire started on the afternoon of June 15 at 16 Mile, east of Highway 97

The Desert Daze Music Festival is doggone good fun, as shown in this photo from the 2019 festival, and it will be back in Spences Bridge this September. (Photo credit: Barbara Roden)
‘Best Little Fest in the West’ returning to Spences Bridge

Belated 10th anniversary Desert Daze festival going ahead with music, vendors, workshops, and more

Internet speed graphic, no date. Photo credit: Pixabay
Study asks for public input to show actual Internet speeds in BC communities

Federal maps showing Internet speeds might be inflated, so communities lose out on faster Internet

Fireworks are among the things now banned throughout the Kamloops Fire Centre, as the weather heats up and a dry summer looms. (Photo credit: Black Press files)
Category 2 and 3 open fires, fireworks now banned in Kamloops Fire Centre

Ban on certain types of fires and fire activities in place until Oct. 15

Maxwell Johnson is seen in Bella Bella, B.C., in an undated photo. The Indigenous man from British Columbia has filed complaints with the B.C. Human Rights Tribunal and the Canadian Human Rights Commission after he and his granddaughter were handcuffed when they tried to open a bank account. THE CANADIAN PRESS/HO-Heiltsuk Nation, Damien Gillis, *MANDATORY CREDIT*
VIDEO: Chiefs join human rights case of Indigenous man handcuffed by police in B.C. bank

Maxwell Johnson said he wants change, not just words, from Vancouver police

Tk’emlups te Secwepemc Chief Rosanne Casimir stands outside the former Kamloops Indian Residential School after speaking to reporters, in Kamloops, B.C., on Friday, June 4, 2021.THE CANADIAN PRESS/Darryl Dyck
Kamloops chief says more unmarked graves will be found across Canada

Chief Rosanne Casimir told a virtual news conference the nation expects to release a report at the end of June

A woman wears a vaccinated sticker after receiving a COVID-19 vaccine at a vaccination clinic run by Vancouver Coastal Health, in Richmond, B.C., Saturday, April 10, 2021. THE CANADIAN PRESS/Jonathan Hayward
B.C. ranks among highest in world in COVID-19 first-dose shots: health officials

More than 76% of eligible people have received their 1st shot

A screenshot of the First Peoples Cultural Councils First Peoples’ Map. (First Peoples Cultural Council)
Online resource blends B.C.-Alberta’s Indigenous languages, art and culture

Advisor says initiative supports the urgent need to preserve Indigenous languages

An artists conception of the new terminal building at the Pitt Meadows Regional Airport.
Air travel taking off in B.C., but lack of traffic controllers a sky-high concern

There will be demand for more air traffic controllers: Miller

Canadian Armed Forces experts are on their way to North Vancouver after a local homeowner expressed worry about a military artifact he recently purchased. (Twitter DNV Fire and Rescue)
Military called in to deal with antique ‘shell’ at North Vancouver home

‘The person somehow purchased a bombshell innocently believing it was an out-of-commission military artifact’

Phil McLachlan/(Black Press Media
Man shot at Kamloops shopping centre

The man is believed to be in stable condition

Amy Kobelt and Tony Cruz have set their wedding date for February, hoping that more COVID-19 restrictions will have lifted. (The Macleans)
B.C. couples ‘gambling’ on whether COVID rules will let them dance at their wedding

Amy Kobelt and Tony Cruz pushed back their wedding in hopes of being able to celebrate it without the constraints of COVID-19

A plane is silhouetted as it takes off from Vancouver International Airport in Richmond, B.C., May 13, 2019. THE CANADIAN PRESS/Jonathan Hayward
Report calls for airlines to refund passengers for flights halted due to COVID-19

Conclusion: federal help should be on the condition airlines immediately refund Canadian travellers

Most Read