Gross Domestic Product (GDP)
Gross Domestic Product (GDP) is the total monetary value of goods and services produced within an economy during a specific period of time. It is used as a measure of the size and growth of an economy.
- The Canadian economy is estimated to have entered a recession in Q1 2020 when real Gross Domestic Product (GDP) declined by 2.1 per cent.
- COVID-19 response measures including business closures contributed to the decline in Canadian GDP.
- The impacts of measures are expected to continue into Q2 2020.
- Economic activities in Peel are important contribute significantly to changes in provincial and national GDP.
Quarterly and Annualized Real GDP
Following a 0.1 per cent quarterly increase in the Canadian GDP in the last quarter of 2019, there was a 2.1 per cent decline in Q1 2020.
This was estimated to have been the start of an economic recession in Canada and was the steepest decline in Canadian real GDP recorded since the -1.8 per cent observed in Q1 2009.
The decline in Q1 2020 reflects the impact of the COVID-19 response measures, such as the school closures, non-essential business closures, border shutdown, and travel restrictions, put in place to control the COVID-19 pandemic.
The onset of the COVID-19 pandemic in the first quarter of 2020 also tipped the global economy into a recession.
On an annualized basis, Canadian real GDP declined by 8.2 per cent in Q1 2020, following an increase of 0.6 per cent recorded in Q4 2019.
Canadian Real Gross Domestic Product Forecast
The federal government forecasts for the real GDP for Canada are as follows:
- 2020: -6.8 per cent; and
- 2021: 5.5 per cent