The C.D. Howe Institute’s Business Cycle Council has released a new report, in a May 1, 2020 story. (Photo by THE CANADIAN PRESS)

C.D. Howe’s Business Cycle Council says country has entered a recession

New report released

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 Friday, the council said 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.

However, the C.D. Howe council defines a recession as a pronounced, persistent, and pervasive decline in aggregate economic activity and it looks at both GDP and employment as its main measures.

“Members agreed that by applying the council’s methodology to the preliminary data available, Canada entered a recession in the first quarter of 2020,” the council said in statement.

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.

“The council agreed the magnitude of the contraction makes it extremely unlikely that any future adjustments will overturn the conclusion of a major drop in economic activity in the first quarter,” the council said.

Statistics Canada reported Thursday that economic growth had stalled going into the crisis, with real gross domestic product essentially unchanged in February due to teacher strikes in Ontario and rail blockades across many parts of the country.

The official estimates of GDP for March and the first quarter of 2020 will be released on May 29.

This report by The Canadian Press was first published May 1, 2020.

Canadaeconomy

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

Alberta reports just seven new COVID-19 cases

‘Today’s numbers mark an occasion to be celebrated’

Broncs to hold virtual camp, free of charge

Broncs Virtual Camp for grades 6 to 11 will begin June 9

Still no confirmed active COVID-19 cases in Red Deer, central zone

There are 15 new confirmed cases were in Alberta, the province said Thursday

UPDATE: Poster contest extended

Kids have one more week to get their entries in

Part II: Calkins says Canada can’t sustain long-term shutdown

Reopening Alberta now is a ‘difficult balancing question’

PODCAST: Black Lives Matter in central Alberta

Community organizers come on the show to discuss central Albertan anti-racist movement

Montreal man believes rough arrest caught on video was racially motivated

Montreal man believes rough arrest caught on video was racially motivated

N.B. police shooting of Indigenous woman leads to questions on ‘wellness checks’

N.B. police shooting of Indigenous woman leads to questions on ‘wellness checks’

Minister says reckoning on police violence against Indigenous people needed

Minister says reckoning on police violence against Indigenous people needed

Nunavut to bring in civilian police review after arrest video: minister

Nunavut to bring in civilian police review after arrest video: minister

Trudeau takes a knee at anti-racism protest on Parliament Hill

Trudeau takes a knee at anti-racism protest on Parliament Hill

Liberal MP Marwan Tabbara faces assault, break and enter, harassment charges

Liberal MP Marwan Tabbara faces assault, break and enter, harassment charges

Black Canadians say racism here is just as harmful as in the United States

Black Canadians say racism here is just as harmful as in the United States

Implementation of Divorce Act reforms delayed eight months by pandemic

Implementation of Divorce Act reforms delayed eight months by pandemic

Most Read