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Canadian economy continues to recover but remains behind pre-COVID levels – Victoria News

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Economic activity in the public sector (education, health care and public administration) as well as manufacturing and professional services grew as the Canadian economy continues to recover from COVID-19.

The Canadian economy grew by 1.2 per cent in August, following a 3.1 per cent increase in July, but overall economic activity remains about five per cent below February’s pre-pandemic level.

Increased hiring of educational as well as health care staff contributed to the rise in public sector employment, while various categories of workers in professional services including computer systems design and related services also rose. Economic activity in construction and to a lesser degree manufacturing also rose.

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Economic activity in the accommodation and food services rose 7.3 per cent in August, with the arts, entertainment and recreation sector having grown 13.7 per cent.

But if these sectors of the economy have shown signs of recovery, other sectors including mining, quarrying, and oil and gas extraction continue to struggle, having decreased 1.7 per cent in August. Looking at sub-categories, low global oil prices continue to hurt the oil and gas industry. The industry as a whole dropped 3.9 per cent in August, while economic activity in oil sands extraction dropped 7.5 per cent.

These national figures, however, do not capture the regional picture.

The public heard last month that the tourism sector — a key component of the local economy — continues to struggle on Vancouver Island. According to a presentation by economist Susan Mowbray during last month’s Vancouver Island Economic Alliance summit, ferry travel this year is down 51 per cent, and between April and July, airport traffic was down 82-97 per cent, hotel occupancy was down 51-81 per cent and room rates were down 34-54 per cent.


Do you have a story tip? Email: vnc.editorial@blackpress.ca.

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wolfgang.depner@peninsulanewsreview.com

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Australia's economy rebounds sharply in third quarter, beats forecast – TheChronicleHerald.ca

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By Swati Pandey

SYDNEY (Reuters) – Australia’s economy handily beat forecasts last quarter, rebounding from a coronavirus-induced contraction helped by massive stimulus, while growth is expected to be even stronger this quarter with near-zero new COVID cases.

The economy expanded by 3.3% in the three months to September, data from the Australian Bureau of Statistics (ABS) showed on Wednesday. Economists in a Reuters poll had forecast a 2.6% rise after a 7% contraction in second quarter.

Despite the brisk pace of quarterly growth, GDP still contracted 3.8% on an annual basis, suggesting the recession-stricken economy is not out of the woods yet and that policy support will be needed for some time.

The rebound was led by household spending, which rose 7.9%, the data showed.

But annual output is not expected to reach pre-COVID levels until late next year, provided Australia is able to keep the virus at bay.

The country, which has recorded nearly 28,000 coronavirus cases, has been lauded globally for successfully reopening its economy in late-May after curbing the pandemic.

That, together with A$300 billion ($221.55 billion)in fiscal stimulus and record low cash rate of 0.1%, have boosted jobs, credit demand, home prices and household consumption.

In a sign of solid consumer demand, Australia’s top lender Commonwealth Bank saw nationwide spending on its credit and debit cards jump 12% for the week-ending Nov.23 from last year.

ANZ Banking Group said spending on its cards surged 28% for the week to end-November, helped by Black Friday and Cyber Monday sales.

“Q4 growth is currently shaping up to be solid,” ANZ economists wrote in a note.

“The strong rebound in activity in Melbourne, the broader bounce in consumer and business confidence, along with upside surprises from the high frequency data are currently suggesting that December quarter growth will be pretty solid.”

Victoria state, of which Melbourne is the capital, reopened from its marathon lockdown in late October.

(Reporting by Swati Pandey; Editing by Ana Nicolaci da Costa)

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Economy

Australia's economy rebounds sharply in third quarter, beats forecast – TheChronicleHerald.ca

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By Swati Pandey

SYDNEY (Reuters) – Australia’s economy handily beat forecasts last quarter, rebounding from a coronavirus-induced contraction helped by massive stimulus, while growth is expected to be even stronger this quarter with near-zero new COVID cases.

The economy expanded by 3.3% in the three months to September, data from the Australian Bureau of Statistics (ABS) showed on Wednesday. Economists in a Reuters poll had forecast a 2.6% rise after a 7% contraction in second quarter.

Despite the brisk pace of quarterly growth, GDP still contracted 3.8% on an annual basis, suggesting the recession-stricken economy is not out of the woods yet and that policy support will be needed for some time.

The rebound was led by household spending, which rose 7.9%, the data showed.

But annual output is not expected to reach pre-COVID levels until late next year, provided Australia is able to keep the virus at bay.

The country, which has recorded nearly 28,000 coronavirus cases, has been lauded globally for successfully reopening its economy in late-May after curbing the pandemic.

That, together with A$300 billion ($221.55 billion)in fiscal stimulus and record low cash rate of 0.1%, have boosted jobs, credit demand, home prices and household consumption.

In a sign of solid consumer demand, Australia’s top lender Commonwealth Bank saw nationwide spending on its credit and debit cards jump 12% for the week-ending Nov.23 from last year.

ANZ Banking Group said spending on its cards surged 28% for the week to end-November, helped by Black Friday and Cyber Monday sales.

“Q4 growth is currently shaping up to be solid,” ANZ economists wrote in a note.

“The strong rebound in activity in Melbourne, the broader bounce in consumer and business confidence, along with upside surprises from the high frequency data are currently suggesting that December quarter growth will be pretty solid.”

Victoria state, of which Melbourne is the capital, reopened from its marathon lockdown in late October.

(Reporting by Swati Pandey; Editing by Ana Nicolaci da Costa)

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Statistics Canada says economy grew at a record pace in third quarter of 2020 – CP24 Toronto's Breaking News

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OTTAWA – Statistics Canada says the economy grew at a record annualized pace of 40.5 per cent in the third quarter as businesses came out of COVID-19 lockdowns.

The previous record for quarterly growth in real gross domestic product was 13.2 per cent in the first quarter 1965, the agency says.

As historic as the rebound was, it fell short of expectations.

Financial data firm Refinitiv says the average economist estimate was for an annualized growth rate of 47.6 per cent for the quarter.

The rebound over July, August and September was a sharp turnaround from the preceding three-month stretch which saw a record drop.

Driving the bounce-back were the further rolling back of public health restrictions that allowed businesses to reopen.

Statistics Canada also says there was a substantial increase in the housing market owing to low interest rates and household spending on goods like cars.

Despite the overall increase, the national statistics office says real gross domestic product still remains shy of where it was before the pandemic.

The third quarter ended with the fifth consecutive monthly increase in real GDP after the steepest monthly drops on record in March and April when widespread lockdowns were instituted to slow the spread of COVID-19.

September saw a 0.8 per cent increase in real GDP, Statistics Canada says, a slight slowing from the 0.9 per cent recorded in August.

The agency also provided a preliminary estimate for October’s figures, saying early indicators point to a 0.2 per cent increase in the month. The figure will be finalized at the end of this month.

“The fourth quarter of 2020 is still beginning with some growth, though less than we had anticipated,” CIBC senior economist Royce Mendes wrote in a note.

“Looking ahead, the economy faces a December with harsh restrictions that will likely see another contraction in economic activity.”

This report by The Canadian Press was first published Dec. 1, 2020.

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