Canada's economy shrank for 2nd month in a row in May

·1 min read
Canada's third wave of COVID-19 gripped the economy hard in May, but there are signs that things started to rebound in June. (David Paul Morris/Bloomberg - image credit)
Canada's third wave of COVID-19 gripped the economy hard in May, but there are signs that things started to rebound in June. (David Paul Morris/Bloomberg - image credit)

Canada's gross domestic product shrank by 0.3 per cent in May, the second consecutive monthly contraction as most industries slowed down.

Statistics Canada reported Friday that most industries shrank, especially construction, manufacturing and retail.

Agriculture and forestry, mining and oil and gas extraction, utilities and the public sector all expanded slightly.

All in all, the total value of all the goods and services produced by Canada's economy was just shy of $1.98 trillion during the month. That's still two per cent below the slightly more than $2 trillion that the economy was worth in February 2020.

The numbers for May come at the time when Canada's economy was on the downslope of the third wave of COVID-19, and much of society was on some sort of lockdown or reduced capacity. But there are signs that a rebound has happened since.

Preliminary data for June suggests the economy grew by 0.7 per cent during the month.

More to come

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