The CD. The Howe Institute’s Business Cycle Council says Canada has entered a recession due to the economic devastation caused by the COVID-19 pandemic.
In a report released on Friday, the board said the economy peaked in February before measures to slow the spread of the coronavirus stopped the economy.
A commonly used definition for a recession is two consecutive quarters of negative economic growth from quarter to quarter.
However, the C.D. Howe’s counsel defines a recession as a sharp, persistent and widespread decline in overall economic activity, and views GDP and employment as its primary measures.
“The members agreed that by applying the board’s methodology to the preliminary data available, Canada entered a recession in the first quarter of 2020,” the board said in a statement.
The March employment report found that over a million jobs were lost in the month, while a preliminary estimate from Statistics Canada suggests that the economy contracted by 9% over the course of the month. in the same month.
“The board agreed that the magnitude of the contraction makes it extremely unlikely that any future adjustment will reverse the finding of a significant drop in economic activity in the first quarter,” said the board.
Statistics Canada announced on Thursday that economic growth had stalled before the crisis, with real gross domestic product remaining virtually unchanged in February due to teachers’ strikes in Ontario and train barrages in many parts of the country.
Official GDP estimates for March and the first quarter of 2020 will be released on May 29.
This report from The Canadian Press was first published on May 1, 2020.