Statistics Canada's preliminary estimate shows that the economy contracted by 5.1% in 2020. By way of comparison, preliminary U.S. data suggests that economy shrank by 3.5% for all of 2020.
Statistics Canada noted the full year results for the economy as it announced that Canada’s Gross Domestic Product (GDP) expanded by 0.7% in November. The Ottawa-based data agency said the country's GDP grew seven months in a row after steep drops in March and April of last year.
However, Canada’s economy was still 3% smaller in November than it was in February 2020, before COVID-19 took hold. Statistics Canada said its preliminary estimate for December shows growth of 0.3%, even as much of the country headed into heavy restrictions and new lockdowns to slow the spread of COVID-19.
Economists had forecast that Canada’s economy would only grow 0.4% in November. The final numbers were almost twice that growth rate. Economists had also expected a shrinkage in December as lockdowns took hold, but Statistics Canada now says there was a small gain for that month, too.
