Canada’s economy likely grew by 6.5% on an annualized basis in the first quarter, Statistics Canada said on Friday, though economists warned that the current third wave of COVID-19 infections will weigh in the second quarter.
In a preliminary estimate, Statscan said the economy likely grew by 0.9% in March from February. In February, the economy expanded 0.4%, a 10th consecutive monthly gain, on a rebound in retail trade and on the strength of residential construction.
That was slightly below analyst estimates that gross domestic product would grow by 0.5% in February from January.
The gains, as some controls were eased between the second and third waves of COVID-19 virus spread, put Canada’s first-quarter GDP growth in line with the U.S., said economists. This despite more restrictions and a slower vaccine rollout.
By March, economic activity was likely only about 1% below pre-pandemic levels, Statscan said. But lockdowns imposed in April to curb a another surge in COVID-19 infections will weigh in the coming months.
