Canada: No growth in GDP expected in the first quarter – RBC
|The Canadian economy lost 63K jobs in December, the worst number since April. Analysts at RBC Capital Markets expect the first quarter to be a challenging one for the economy, with no growth in GDP expected.
Key Quotes:
“The 63k drop in employment in December was the first decline since the spring, albeit only a fraction of the 3 million pullback over March and April last year. The unemployment rate edged up to 8.6% from 8.5% and the labour force participation rate fell.”
“With virus spread remaining at alarming levels in much of Canada, and containment measures being extended and expanded, both the labour market and broader economic recovery appear to have stalled.”
“We expect the first quarter of 2021 will be a challenging one for the Canadian economy, with no growth in GDP expected. As vaccinations become more broadly distributed we look for the economy to regain its momentum leading to a recovery in job creation.”
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.