TORONTO — The C.D. 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 today, the council says the economy peaked in February before the steps taken to slow the spread of the coronavirus brought the economy to a standstill.
A commonly used definition for a recession is two consecutive quarters of negative quarter-over-quarter economic growth.
Preliminary data suggests Canada entered a recession in the first quarter of 2020, says the C.D. Howe Institute’s Business Cycle Council: https://t.co/GnD2dp7CDU #cdnecon #cdnpoli pic.twitter.com/J3JfXedjkP
— C.D. Howe Institute (@CDHoweInstitute) May 1, 2020
However, the C.D. Howe council defines a recession as a pronounced, persistent, and pervasive decline in aggregate econo
mic activity and it looks at both GDP and employment as its main measures.
It says by that measure, the preliminary economy data suggests the country has entered a recession.
The March jobs report showed more than a million jobs were lost in the month, while a preliminary estimate by Statistics Canada suggests the economy contracted by nine per cent in the same month.
This report by The Canadian Press was first published May 1, 2020.
The Canadian Press