Connect with us

Economy

Canada's economy grew another 0.4% in October, but still well shy of pre-COVID level – CBC.ca

Published

 on


Canada’s economy grew by 0.4 per cent in October, the sixth straight month of expansion after a record-setting plunge in April.

Statistics Canada said Wednesday that the country’s gross domestic product grew thanks to a 0.1 per cent expansion in goods-producing industries, and a 0.5 per cent increase from the service sector.

The overall gain was slightly better than the 0.3 per cent that economists had been expecting.

The numbers mean that as of October, the total value of all economic activity in Canada was worth just over $1.9 trillion, on a seasonally adjusted annual rate.

In February, before COVID-19 hit, the economy was producing just over $2 trillion, at a seasonally adjusted annual rate. That means despite six straight months of growth, Canada’s economy is still producing $83 billion less than it was before the pandemic hit.

Most industries grew, except for manufacturing and the food and accommodation sector, which continues to be hard hit by COVID-19.

‘A better glow’ on prospects for 2021

As it has started doing for every month during the pandemic, Statscan offers a glimpse of the early numbers for the next month along with each month’s data. The estimate for November’s data is for another 0.4 per cent rise, which if it comes to pass still means the economy will be on track to be almost four per cent below where it was before COVID-19.

(It’s worth noting that the data agency’s advance look for October was for 0.2 per cent growth, and the final number ended up being twice that.)

Economist Doug Porter with Bank of Montreal said the advanced reading for November is better news than anything that was in the October data, as there were fears that November could have been a dud.

“Recall that November saw new restrictions in a number of regions, including in Toronto, and many were bracing for the possibility of an outright decline in activity,” he said.

If the decent showing comes to pass, that will bode well for the next few months, as the country waits for mass vaccination to help things get back to normal.

“The solid back-to-back gains near the end of the year not only put a better glow on the prospects for 2021, but they even will likely lead to some reassessment of just how deep the damage was for this year,” Porter said.

Canada’s economy fell off a cliff in March and April before slowly climbing its way out of the hole. (Pete Evans/CBC)

Other views aren’t quite so rosy.

Sri Thanabalasingam with TD Bank is among those expecting the numbers to take a turn for the worse in the coming months, given what we already know about the virus’s spread since October.

“The health and economic landscape have shifted significantly since October. The spread of the virus has become even more alarming, and provinces are reacting with strong measures,” Thanabalasingam said. “Lockdowns in Alberta and Ontario point to an economic contraction in December and possibly January. Only as health outcomes improve can the economy find its legs.

“Let’s hope this happens sooner rather than later.”

Let’s block ads! (Why?)



Source link

Continue Reading

Economy

German economy to stagnate in Q1 – economist – TheChronicleHerald.ca

Published

 on


BERLIN (Reuters) – The German economy will stagnate in the first quarter of the year, Ifo economist Klaus Wohlrabe said on Monday, in the latest sign of the toll being taken by lockdown on Europe’s largest economy.

“The German economy is starting the year with little confidence,” Wohlrabe said, adding that delays in COVID-19 vaccine deliveries were adding to the uncertainty.

German business morale fell by more than expected in January as a second wave of COVID-19 brought to a halt a recovery in Europe’s largest economy, a survey showed on Monday.

(Reporting by Rene Wagner; Writing by Riham Alkousaa; Editing by Thomas Escritt)

Let’s block ads! (Why?)



Source link

Continue Reading

Economy

Kenya's Economy Seen Growing This Year After Dodging Shrinkage – BNN

Published

 on


(Bloomberg) —

Kenya’s economy is expected to expand this year as activity resumes following Covid-19 lockdowns, boosting tax revenue and government spending.

East Africa’s largest economy is projected to grow by 6.4% this year and slow to 5.5% in 2022, with scheduled elections seen dampening activity, Treasury said in a report on its website. The economy is estimated to have expanded 0.6% last year.

“There has been an improvement in economic activity in the third and fourth quarters of 2020, albeit at a slow pace, following reopening of the economic, but pickup is weak,” according to the Treasury’s budget policy statement. The economy contracted by 5.7% in the second quarter of 2020, after growing 4.9% in the previous three months.

Other Highlights:

  • The finance ministry expects government spending to rise by 3.2% to 2.968 trillion shillings ($27 billion) in the fiscal year starting in July. The fiscal deficit is seen at 7.5% of GDP, narrowing from an estimated 9% in the current fiscal year.
  • The financing gap in the coming year will be plugged by net external financing of 345.5 billion shillings, or 2.8% of GDP, and net domestic borrowing of 592.2 billion shillings, equivalent to 4.7% GDP.
  • While the economic shock from the Covid-19 pandemic has worsened Kenya’s debt indicators, the government is optimistic that the economy will recover and the debt position will improve.
  • “Kenya faces a fiscal risk as the shilling continues to depreciate due to the fact that 51% of the debt is held in external currencies. This has led to increase in debt service budget in local currency and also increase on the stock of debt without inflows.”
  • Lending to the private sector grew by 8.1% in the 12 months to November, it said.

©2021 Bloomberg L.P.

Let’s block ads! (Why?)



Source link

Continue Reading

Economy

Kenya's Economy Seen Growing This Year After Dodging Shrinkage – BNN

Published

 on


(Bloomberg) —

Kenya’s economy is expected to expand this year as activity resumes following Covid-19 lockdowns, boosting tax revenue and government spending.

East Africa’s largest economy is projected to grow by 6.4% this year and slow to 5.5% in 2022, with scheduled elections seen dampening activity, Treasury said in a report on its website. The economy is estimated to have expanded 0.6% last year.

“There has been an improvement in economic activity in the third and fourth quarters of 2020, albeit at a slow pace, following reopening of the economic, but pickup is weak,” according to the Treasury’s budget policy statement. The economy contracted by 5.7% in the second quarter of 2020, after growing 4.9% in the previous three months.

Other Highlights:

  • The finance ministry expects government spending to rise by 3.2% to 2.968 trillion shillings ($27 billion) in the fiscal year starting in July. The fiscal deficit is seen at 7.5% of GDP, narrowing from an estimated 9% in the current fiscal year.
  • The financing gap in the coming year will be plugged by net external financing of 345.5 billion shillings, or 2.8% of GDP, and net domestic borrowing of 592.2 billion shillings, equivalent to 4.7% GDP.
  • While the economic shock from the Covid-19 pandemic has worsened Kenya’s debt indicators, the government is optimistic that the economy will recover and the debt position will improve.
  • “Kenya faces a fiscal risk as the shilling continues to depreciate due to the fact that 51% of the debt is held in external currencies. This has led to increase in debt service budget in local currency and also increase on the stock of debt without inflows.”
  • Lending to the private sector grew by 8.1% in the 12 months to November, it said.

©2021 Bloomberg L.P.

Let’s block ads! (Why?)



Source link

Continue Reading

Trending