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Canada’s economy grew another 0.4% in October, but still well shy of pre-COVID level

Canada’s economy grew by 0.4 per cent in October, the sixth straight month of expansion after a document-environment fall in April.

Regardless of six months of enhance, Canada’s economy is soundless smaller than it used to be in February, sooner than COVID-19 struck. (Frank Desoer/Radio-Canada)

Canada’s economy grew by 0.4 per cent in October, the sixth straight month of expansion after a document-environment fall in April.

Statistics Canada acknowledged Wednesday that the nation’s sinister home product grew resulting from a 0.1 per cent expansion in items-producing industries, and a 0.5 per cent extend from the service sector.

The general create used to be a diminutive bit better than the 0.3 per cent that economists had been awaiting.

The numbers point out that as of October, the full value of all economic grunt in Canada used to be value capable over $1.9 trillion, on a seasonally adjusted annual fee.

In February, sooner than COVID-19 hit, the economy used to be producing capable over $2 trillion, at a seasonally adjusted annual fee. That technique despite six straight months of enhance, Canada’s economy is soundless producing $83 billion lower than it used to be sooner than the pandemic hit.

Most industries grew, with the exception of for manufacturing and the meals and accommodation sector, which remains to be laborious hit by COVID-19.

‘A bigger glow’ on potentialities for 2021

Because it has began doing for each month at some stage in the pandemic, Statscan affords a detect of the early numbers for the next month along with each month’s recordsdata. The estimate for November’s recordsdata is for one other 0.4 per cent upward thrust, which if it involves walk soundless technique the economy will be no longer off target to be practically four per cent under the keep it used to be sooner than COVID-19.

(It’s value noting that the recordsdata agency’s reach survey for October used to be for 0.2 per cent enhance, and the final quantity ended up being twice that.)

Economist Doug Porter with Bank of Montreal acknowledged the evolved studying for November is healthier news than anything else that used to be in the October recordsdata, as there had been fears that November would possibly well possibly possibly possibly had been a dud.

“Rob that November saw new restrictions in a different of areas, including in Toronto, and a lot had been bracing for the attainable of an outright decline in grunt,” he acknowledged.

If the first fee exhibiting involves walk, that would possibly well bode successfully for the next couple of months, because the nation waits for mass vaccination to attend things come over again to traditional.

“The solid back-to-back gains method the live of the 12 months no longer finest keep a larger glow on the potentialities for 2021, however they even will likely lead to some reassessment of most sensible likely how deep the rupture used to be for this 12 months,” Porter acknowledged.

Varied views will no longer be rather so rosy.

Sri Thanabalasingam with TD Bank is among those awaiting the numbers to steal a turn for the extra serious in the approaching months, given what we already know about the virus’s spread since October.

“The health and economic panorama delight in shifted tremendously since October. The spread of the virus has change into even extra alarming, and provinces are reacting with solid measures,” Thanabalasingam acknowledged. “Lockdowns in Alberta and Ontario exhibit an economic contraction in December and possibly January. Simplest as health outcomes give a dangle to can the economy acquire its legs.

“Let’s hope this occurs sooner reasonably than later.”

Referring to the Author

Pete Evans is the senior industry writer for CBCNews.ca. Ahead of coming to the CBC, his work has appeared in the Globe & Mail, the Financial Put up, the Toronto Megastar, Canadian Industrial Journal and — affirm it or no longer — Circuits Assembly Journal. Twitter: @p_evans E mail: pete.evans@cbc.ca Proper PGP: https://exact.cbc.ca/public-key/Pete-Evans-pub.asc

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