(CMR) The C.D. Howe Institute on Friday (May 1) said that Canada had officially entered a recession.
The institute, a policy research organization made the revelation after analyzing preliminary GDP and employment data from Statistics Canada as of April 30.
A report released by C.D. Howe showed that preliminary data for the first quarter highlighted a deep contraction in economic activity coupled with a weakening labor market.
The March jobs report showed more than a million jobs were lost in the month, while a preliminary estimate by Statistics Canada suggested the economy contracted by nine percent in the same month.
The institute concluded that Canada hit the peak of the business cycle in February before the recession began in March, as a result of strict physical distancing measures and the closure of non-essential businesses.
“The council agreed the magnitude of the contraction makes it extremely unlikely that any future adjustments will overturn the conclusion of a major drop in economic activity in the first quarter,” the council said.
Canada will release its official figures for GDP in March and the first quarter of 2020 on May 29.