In the first three months of 2021, Canada’s economy expanded by 6.5 percent as the service sector showed signs of recovering from the COVID-19 recession, with much of the manufacturing industry still lagging behind.
Statistics Canada’s GDP grew 0.4 percent in February alone, Canada said on Friday. It rose 0.7 percent in January. But early data for March showed 0.9 percent growth, putting Canada on track for healthy growth for the quarter as a whole.
U.S. numbers on Thursday The US economy expanded slightly less over the same period, At an expansion rate of 6.4 percent.
“So, without the help of very tight controls, slow vaccine rolls and two mega-US stimulus packages at the beginning of the year, the Canadian economy somehow adapted to the US hierarchy during the winter months,” said Bank of Montreal economist Doug Porter. “That’s interesting.”
March numbers are preliminary, so they may change in next month’s update. But February’s numbers are now final, and they paint a picture of an economy with an imbalance from the COVID-19 epidemic.
Fourteen data gains were reported in 20 industries, including retail and food and shelter, which were hardest hit by the first waves of COVID-19.
Retail sales rose 4.5 percent in December and January following a two-month contraction.
The food and accommodation sector has been hit by the COVID-19 strikes, but it has expanded by 3.5 percent. This is the first monthly increase since August 2020.
On the other hand, production contracted for the second month in a row, this time 0.9 percent. Mining, quarrying and oil and gas contracted by 2.8 per cent and transport by two per cent.
While it is encouraging to see overall growth after 2020 Worst year for Canada’s economy, TV. According to economist Sri Dhanabalasingam with the bank, the numbers still show how long and slow the recovery from COVID-19 will be because the virus is hitting Canada’s economy hard.
“February, and even March, doesn’t it look like a long time ago?” He said in a note he wrote to customers after the numbers came out.
While vaccination efforts are on the rise, there are occasional hopes that things will return to normal this summer, with “this timeline uncertain. What’s more certain is that the next phase of recovery will require vaccines to get their hands on the virus. It will happen sooner than later.”