Canadian economy shrinks by 8.2% in the first quarter

The Canadian economy is down 8.2 percent year on year in the first quarter of this year, and is the biggest decline since the beginning of 2019, under the influence

of the Covid-19 pandemic, according to the Institute for Statistics.

The outbreak of the new Coronavirus is a blow to household spending, which has recorded an unprecedented decline, while many non-core companies closed their doors.

Statistics Canada reported that in the quarterly numbers published, the decline was 2.1% in the first quarter of the year compared to the previous quarter, a decrease of 1.5% in

"The Canadian economy collapsed in March," the economist at Desjardins de Montréal in Benoit d'Orch said, noting that data from the Statistical Institute indicated an 11 percent drop in GDP

between March and April, indicating an expectation of more The decline in the second quarter growth exacerbated.

This drop-in GDP resulted in the first quarter due to measures imposed from mid-March to contain the epidemic, such as the closure of schools and non-core companies, borders, and travel restrictions.

The Statistical Institute said household spending fell by 2.3 percent in the first quarter of 2020, explaining that it was "the largest quarterly decline ever recorded."

In addition to some factors, such as the loss of a large number of jobs, income uncertainty, and limited spending opportunities, the lower consumer expenditures that make up the Canadian economy.

Consumer spending on public administrations also decreased by 1 percent, the largest decrease since 2013.

This is illustrated by the closure of schools and the decrease in departmental activities.

It is noteworthy that exports fell by 3 percent and imports by 2.8 percent as major trading partners for Canada, especially the United States, China, and most European countries, imposed