Shipping containers are seen at the Fairview Cove Container Terminal in Halifax on Friday, Aug. 25, 2017. THE CANADIAN PRESS/Andrew Vaughan

Shipping containers are seen at the Fairview Cove Container Terminal in Halifax on Friday, Aug. 25, 2017. THE CANADIAN PRESS/Andrew Vaughan

Canadian economy contracted 5.4 per cent in 2020, worst year on record

Economic activity has slowly and steadily grown since last spring

OTTAWA — The Canadian economy posted its worst showing on record in 2020 as the COVID-19 pandemic swept across the country, shutting down businesses and putting millions out of work.

Statistics Canada says real gross domestic product shrank 5.4 per cent in 2020, the steepest annual decline since comparable data was first recorded in 1961.

The drop for the year was due to the shutdown of large swaths of the economy in March and April during the first wave of the COVID-19 pandemic that crushed the economy.

Since then, economic activity has slowly and steadily grown.

Statistics Canada says the economy grew at an annualized rate of 9.6 per cent in the fourth quarter of last year, down from an annualized growth rate of 40.6 per cent in the third quarter.

That was higher than expected, with financial data firm Refinitiv’s average economist estimate at 7.5 per cent.

This report by The Canadian Press was first published March 2, 2021.

Canadaeconomy

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

Just Posted

Red Deer City Hall. (File photo)
Red Deerians will see a slight tax increase, but the municipal portion is at zero per cent

The provincial educational requisition went up by about half a per cent

The length of grass on people’s lawns could be part of the new Community Standards bylaw being considered by Red Deer city council. (Black Press file photo).
Loitering, noise complaints, swearing covered in proposed bylaw

A few old rules could be dropped and new rules added

Heather Buelow, owner of Aerial Edge Studio in Blackfalds, says she has spent all of her savings to keep the studio going through government-mandated shutdowns during the COVID-19 pandemic. (Contributed photo)
Either open in-person or close permanently: Central Alberta yoga studio defying rules

A central Alberta woman is allowing clients back into her traditional and… Continue reading

Sweden skip Niklas Edin makes a shot against Scotland in the Men's World Curling Championship gold medal final in Calgary, Alta., Sunday, April 11, 2021. Curling's Humpty's Champions Cup in Calgary has been pushed back a day due to the delayed finish of the men's world championship. THE CANADIAN PRESS/Jeff McIntosh
Start of Humpty’s Champions Cup pushed back a day in Calgary

Start of Humpty’s Champions Cup pushed back a day in Calgary

Men’s world curling championship in Calgary concludes amid COVID scare

Men’s world curling championship in Calgary concludes amid COVID scare

New York Yankees starting pitcher Gerrit Cole throws against the Toronto Blue Jays during the first inning of a baseball game Monday, April 12, 2021, in Dunedin, Fla. (AP Photo/Mike Carlson)
Higashioka and Cole help Yankees beat Blue Jays 3-1

Higashioka and Cole help Yankees beat Blue Jays 3-1

Alberta doctors say trust must be rebuilt after proposed new labour deal rejected

Alberta doctors say trust must be rebuilt after proposed new labour deal rejected

People line up in the rain for a COVID-19 vaccine at a pop-up clinic at the Masjid Darus Salaam in the Thorncliffe Park neighbourhood in Toronto on Sunday, April 11, 2021. THE CANADIAN PRESS/Frank Gunn
Provinces defend health restrictions as COVID-19 cases and hospitalizations rise

Provinces defend health restrictions as COVID-19 cases and hospitalizations rise

Alberta Premier Jason Kenney updates media on measures taken to help with COVID-19, in Edmonton on March 20, 2020. THE CANADIAN PRESS/Jason Franson
Alberta legislature Speaker apologizes for condemning new COVID health restrictions

Alberta legislature Speaker apologizes for condemning new COVID health restrictions

Ukraine’s leader requests a talk with Putin, gets no answer

Ukraine’s leader requests a talk with Putin, gets no answer

Madelyn Boyko poses along with a number of the bath bombs she makes with her mom, Jessica Boyko. Madelyn says she enjoys making the bath bombs with her mom as it is a special time for just the two of them. (Photo Submitted)
5-year-old Sylvan Lake girl selling bath bombs in support of younger brother

Madelyn Boyko is selling bath bombs for CdLS research in honour of her younger brother

Most Read