Economics

Canadian Output Plunges 8.2% With Further Damage Expected

  • Household spending fell 9% annualized, most on record
  • Drop in quarterly output is largest since financial crisis
Photographer: David Kawai/Bloomberg
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Canada’s economy shrank the most since the 2008-09 financial crisis, marking the beginning of what’s expected to be the deepest contraction of the post-war era.

Gross domestic product dropped at an annualized 8.2% in the first three months of the year, Statistics Canada said Friday in Ottawa. Economists had anticipated a 10% decline. The agency also released preliminary estimates for April that show an 11% plunge in output, versus the 7.2% drop in March when coronavirus restrictions were first imposed halfway through the month.