According to Statistics Canada, the country's economy contracted by a record 11.5% in the second quarter compared to the previous quarter and entered a recession due to the coronavirus. In annual terms, GDP in April-June fell by 38.7%, which also became a record figure. Analysts predicted a 12% contraction in the economy qoq and 39.6% y/y. In the first quarter, the Canadian economy contracted 2.1% m/m and 8.2% y/y. Household spending plunged by a record 13.1% quarter-on-quarter amid job losses and limited spending opportunities due to store closures and travel restrictions. Business investments in fixed assets decreased by 16.2%, the maximum since the beginning of the indicator. Government spending fell 2.7% after cutting 0.3% in the first quarter. Exports fell by 18.4%, imports – by 22.6%.
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