Conference Board says Canada to avoid technical recession despite hit

TORONTO — The Conference Board of Canada expects the country will avoid a technical recession as the economy rebounds from a 2.7 per cent contraction in the second quarter.

It expects business investment and exports to substantially decline and consumer spending to ease in the second quarter as the impact of COVID-19 takes hold.

However, it forecasts growth to resume in the third quarter with the overall Canadian economy expanding by just 0.3 per cent in 2020 and then 2.5 per cent in 2021.

The global response to the novel coronavirus, including the closing of businesses and cancellation of sporting events, should result in large declines in the number of tourists coming to Canada this year and a cut in their spending.

The board expects the job market will face a modest downturn as 138,000 jobs will be created for the year, down from 391,000 last year.

However, it expects the temporary nature of the coronavirus will prompt most firms to do their best to retain workers to be in a position to resume growth later in the year.

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

Just Posted

Alberta’s chief medical officer of health, Dr. Deena Hinshaw, announced more than 1,500 active cases in Alberta Monday afternoon and five additional deaths. (Photo by Chris Schwarz/Government of Alberta)
New COVID rules coming

Central zone active cases up by 100 in last 24 hours

Red Deer city council gave final approval to a mask bylaw that will go into effect on Nov. 30. (Black Press file photo).
Red Deer city council approves mask bylaw that takes effect on Nov. 30

It could be ‘superceded’ by a provincial mask bylaw, if one is announced Tuesday

The revised plans for the Dream Centre feature a two-storey renovated building. The centre launched a campaign Monday in hopes of raising more than a million to help with building renovation. (Contributed image).
Red Deer Dream Centre launches campaign, hopes to raise $1.4M

A proposed addiction treatment centre is hoping to raise $1.4 million to… Continue reading

Lynn Van Laar, chair of this year’s Christmas Wish Breakfast, said the event was planned outdoors to minimize the risk of COVID. Photo by Mamta Lulla/Advocate staff
Outdoor Christmas Wish Breakfast helps central Alberta families this holiday season

The coronavirus pandemic isn’t going to stop children from having a merry… Continue reading

Canada's head coach Dave Lowry during practice at the IIHF World Junior Championship in Helsinki, Finland, on Wednesday, December 30, 2015. The Winnipeg Jets have hired Lowry as an assistant coach. THE CANADIAN PRESS/Sean Kilpatrick
Former WHL head coach Dave Lowry joins Paul Maurice’s staff in Winnipeg

Former WHL head coach Dave Lowry joins Paul Maurice’s staff in Winnipeg

Felix Auger-Aliassime, of Canada, returns a shot to Dominic Thiem, of Austria, during the fourth round of the US Open tennis championships in New York on September 7, 2020. THE CANADIAN PRESS/AP, Seth Wenig
A steady if unspectacular season comes to a close for Canada’s Auger-Aliassime

A steady if unspectacular season comes to a close for Canada’s Auger-Aliassime

Sacramento Kings' Alex Len (25) collects a rebound against Brooklyn Nets' Jarrett Allen (31) during the first half of an NBA basketball game Friday, Aug. 7, 2020 in Lake Buena Vista, Fla. THE CANADIAN PRESS/AP, Ashley Landis
Raptors continue to shore up frontcourt, signing Alex Len to one-year deal

Raptors continue to shore up frontcourt, signing Alex Len to one-year deal

Prime Minister Justin Trudeau speak to the media about the COVID-19 virus outside Rideau Cottage in Ottawa, Friday, Nov. 20, 2020. THE CANADIAN PRESS/Adrian Wyld
Freeland says Liberals will deliver economic, fiscal update on Nov. 30

Freeland says Liberals will deliver economic, fiscal update on Nov. 30

Canadian Joint Operations Commander Lt.-Gen. Mike Rouleau speaks during a news conference on the recent Canadian Forces helicopter crash, Tuesday, May 19, 2020 in Ottawa. The Canadian Armed Forces is preparing to formally apologize to victims of sexual misconduct. THE CANADIAN PRESS/Adrian Wyld
Canadian Armed Forces to formally apologize to victims for sexual misconduct

Canadian Armed Forces to formally apologize to victims for sexual misconduct

Alberta Liberal Party David Khan at a campaign stop in Calgary, Alta., Thursday, April 11, 2019. The Alberta Liberal Party says its leader, David Khan, is stepping down. A news release from the party on Sunday evening says Khan is accepting a new job in law. THE CANADIAN PRESS/Jeff McIntosh
Alberta Liberal Party says leader, David Khan, stepping down to accept new job in law

Alberta Liberal Party says leader, David Khan, stepping down to accept new job in law

Edmonton Mayor Don Iveson listens to a question during a news conference in Ottawa, Thursday, February 6, 2020. Iveson says he won't seek re-election next fall. THE CANADIAN PRESS/Adrian Wyld
Edmonton Mayor Don Iveson announces he’s not running for re-election next fall

Edmonton Mayor Don Iveson announces he’s not running for re-election next fall

In this Nov. 17, 2020, photo released by China's Xinhua News Agency, a Long March-5 rocket is seen on the launch pad at the Wenchang Space Launch Site in Wenchang in southern China's Hainan Province. Chinese technicians were making final preparations Monday, Nov. 23, 2020, to launch a Long March-5 rocket carrying a mission to bring back material from the lunar surface in a potentially major advance for the country's space program. (Guo Cheng/Xinhua via AP)
China launches mission to bring back material from moon

China launches mission to bring back material from moon

Most Read