Economics

Trudeau’s Tighter Covid-19 Rules Hit Canada’s Economic Growth

  • Stricter lockdowns to weigh on Canadian GDP compared to U.S.
  • ‘It’s pretty obvious there is a trade-off,’ economist says
Justin Trudeau and Chrystia Freeland meet virtually with Joe Biden on Feb. 23.Photographer: Adrian Wyld/Canadian Press/Bloomberg
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Prime Minister Justin Trudeau’s claims there isn’t a trade-off between Canada’s strict lockdowns and economic growth will be tested this week with the release of new output data.

Analysts expect gross domestic product shrank by more than 5% last year, a middling result among advanced economies. The U.S., with far less restrictive pandemic measures last year, shrank by just 3.5%.