The Canadian economy grew 0.1 per cent on a monthly basis in January as weather and labour disputes offset more positive developments in some sectors. Before the abrupt change in the world economy due to the COVID-19 outbreak, the Canadian economy was set to grow a solid 1.8 per cent in the first quarter. We may start to see the impact of COVID-19 starting with February's GDP data though the impact will mostly be observed in April, which is likely to show an unprecedented decline in economic activity.
Once the outbreak is contained, the Canadian economy should post a strong recovery due to pent-up demand, large amounts of fiscal stimulus and historically low interest rates.
Copyright British Columbia Real Estate Association. Reprinted with permission.