(Bloomberg) -- Canada’s economic activity collapsed in April, with the country recording its biggest drop in output on record in the first full month of lockdowns to curb the Covid-19 pandemic.
Gross domestic product shrank by 11.6%, adding to the 7.5% decline in March, Statistics Canada said Tuesday in Ottawa. Economists had anticipated a 12% contraction.
With the historic decline fully anticipated, the focus now shifts to how quickly and to what extent the economy will recover. May looks to have seen a small rebound, with the agency’s flash estimate predicting a 3% increase.
That would leave economic output at about 16% below levels in February and policy makers have been warning that a full recovery remains a long way off.
Tuesday’s report showed the downturn in April was broad-based, with all 20 industrial sectors down. Services-producing sectors recording a 9.7% decline, led by retail trade and transportation. Goods-producing industries saw a 17% decline in output.
©2020 Bloomberg L.P.