In 2020, real GDP fell in all provinces and in the Northwest Territories in the country.
The drop in economic activity reflected widespread COVID-19-related restrictions imposed on consumers and businesses and reductions in exports, as major trading partners faced similar restrictions.
The scope, duration, and impact of mandatory shutdowns and supply chain disruptions varied by region in Canada. Most regions saw sharp declines in household spending, exports, and business investments in non-residential structures, machinery and equipment, and intellectual property products.
To some extent, the general downturn was mitigated by fewer imports and by increases in general government investments and investments in housing.
The ability to work from home, alongside savings from less travel and less participation in other activities, combined with low mortgage rates, boosted new home construction, renovations, and resales in 2020.
Canadian wages and salaries declined 1.2 percent, but were softened by the federal government COVID-19 support measures to households, such as the Canada Emergency Response Benefit, the Canada Emergency Student Benefit, and the one-time increase in the Canada Child Benefit payment in May 2020.
Household spending fell 5.6 percent in nominal terms because of restrictions on opportunities to spend on travel, tourism, restaurants, and sports- and entertainment-related products.
The household saving rate rose to 14.8 percent in the year, the highest since 1985.
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