Canada’s initial economic projections for 2020 were projected to be better than the slow growth rate of 1.5% in 2019. 2019 was not a good year for the Canadian economy, factors such as global uncertainty, trade tensions, and struggles in the oil sector contributed to an economic decline from 2018. However, signs of growth in residential investment, real estate, and household consumption were major factors towards achieving a 1.7% economic growth for the year. The Bank of Canada interest rates were also expected to be held at 1.75% as it anticipated recovery in 2020 (Cleroux, 2020). The unforeseen COVID-19 hit and the initial economic projections were not going to be met. In the second quarter, the Canadian economy shrunk by 25 percent. COVID-19 lockdowns towards the end of the first quarter greatly affected the second quarter of the Canadian economy. Current projections from the Conference Board of Canada are expecting an overall 4.3% economic decrease in 2020. However, they expect a strong recovery in the third and fourth quarters of 2020 leading into a bounce-back in 2021 with projections of a 6% economic growth. The easements of lockdowns will greatly contribute to Canada’s economic recovery (Thomson, 2020).
Figure 10.
Business person lifting up dollar weights to stabilize economy (Relias, 2017).
