Canadian real GDP grew 3 per cent in July, following a record 6.5 per cent increase in June. However, even after three consecutive months of strong growth, the Canadian economy remains about 6 per cent below its pre-pandemic level of output. All 20 Canadian industrial sectors posted increases in July, with the real estate sector surpassing its pre-pandemic level of GDP.
Statistics Canada preliminary estimate for August real GDP growth is 1 per cent, which means that third quarter real GDP growth is currently tracking at close to 10 per cent, or about 40 per cent on a quarterly annualized basis. Still, even that unprecedented level of growth would still leave the Canadian economy about 4 per cent below its pre-pandemic level. From there, we anticipate a strong, albeit slower rate of growth as the economy heals and enters a “recuperation phase.”
Copyright British Columbia Real Estate Association. Reprinted with permission.