Breaking: Canadian economy contracts by 11.6% in April

Eren Sengezer FXStreet

Real Gross Domestic Product (GDP) in Canada contracted by 11.6% in April, the data published by Statistics Canada revealed on Tuesday. This reading followed March's decline of 7.5% (revised from 7.2%) and came in slightly better than the market expectation for a fall of 13%.

"All 20 industrial sectors of the Canadian economy were down, producing the largest monthly decline since the series started in 1961," Statistics Canada noted in its press release. "The economy was 18.2% below its February level, the month before the COVID-19 measures began."

Underlying details of the report further showed that the manufacturing sector dropped 22.5% in April and the real GDP is expected to expand by 3% in May.

Market reaction

The USD/CAD largely ignored these figures and was last seen trading at 1.3685, gaining 0.2% on a daily basis.

Author

Eren Sengezer

FXStreet

As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.

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