Statistics Canada. (The Canadian Press)

By David Opinko

Canada’s GDP fell by 9% in March, largest drop since at least 1961

Apr 15, 2020 | 12:11 PM

LETHBRIDGE, AB – Statistics Canada has released its “flash estimate” for Canada’s gross domestic product (GDP) for last month and it’s not good.

They say Canada’s GDP declined by approximately nine per cent in March. This would mark the largest one-month decline in GDP since they started measuring it in 1961.

Overall for the first quarter of 2020, their flash estimate of GDP is a decline of about 2.6 per cent.

“Among the hardest hit by social distancing measures and government restrictions have been the travel- and tourism-related industries, such as personal transportation, restaurants and accommodation. Major declines have also occurred in personal services, retailing (other than food), entertainment and sporting events, and movie exhibition.”

While many people have been able to work from home and distance learning has become a growing trend, they say the suddenness and breadth of government shutdowns has prompted a dramatic decline in most sectors.

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It is not bad news for all industries, however.

Activity in healthcare, food distribution, online retail, and streaming grew in March. Despite the collapse in oil prices, Stats Canada says early indicators seem to show that the volume of oil and gas extraction and pipeline transportation had not yet been substantially impacted in March.

Typically, Stats Canada releases data about GDP two months after that period has ended, but they felt it was important to get this information out promptly. This is why they released a flash estimate now.

“These estimates should not be expected to have the same quality as Statistics Canada’s official estimates of GDP and should be seen as a tool to inform users of the change in GDP. These estimates will change once more actual data is used in the compilation of these estimates in May.”