Canada GDP grew 0.1% mom in January, below expectation of 0.2% mom. Growth was recorded in agriculture and forestry, construction, manufacturing, wholesale, finance and insurance, and public sector. Other sectors contracted including mining and oil and gas extraction, utilities, retail, and transportation and warehousing.
Statistics Canada said also noted: “The pandemic will significantly affect economic activity in March and subsequent months. Since the beginning of March, flight suspensions and travel advisories have been announced and various public events have been cancelled or postponed. Crude oil prices have declined amid lower demand due to a slowdown in global economic activity and travel. Additionally, tensions between oil-producing nations are expected to lead to an increase in supply.
Because of these factors, as well as supply chain disruptions for many types of goods, temporary closures of non-essential stores and service providers and the recent lowering of interest rates, the economic effects of the coronavirus outbreak will be deeply felt in subsequent months.”