How bad will Canada’s COVID-19 recession be?

Retail workers have been laid off in droves this month as lockdowns have caused a dramatic reduction in demand for the consumer goods they sell. 
Source: Matias Delacroix/The Associated Press

Date Published: March 27, 2020

Source: CBC

Economists are unsure about the exact impact that the COVID-19 pandemic will have on the Canadian economy, as projections will be determined by our social distancing efforts. The Conference Board of Canada predicts that at minimum, most industries will be closed for six weeks with an economic growth of only 0.3% for the 2020 year. In a worse case scenario, businesses could be closed for up to six months resulting in an annualized contraction rate of 9.6% – worse than that of 2008 and 2009. There has also been a drastic increase in the number of Canadians claiming jobless benefits. It is predicted that approximately 2 million Canadians will, at least, lose their jobs temporarily. The silver lining is that the current recession is described by economists to be “V-shaped,” which is characterized by rapid contraction and subsequent rebounding. 

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Summary by: Sophia Duong