Provincial Outlook

Updated: January 18 , 2021  |  Français

Tough times ahead.

The COVID-19 pandemic has caused a sharp contraction in economic activity throughout the world. We expect global real GDP to decline by 4.7 per cent this year, crushed by the lockdowns that brought a halt to non-essential activities in most countries in the second quarter of 2020. The global economy recovered part of the lost ground in the third quarter, but a second wave of the virus and a delay in additional stimulus measures in the United States is hampering the recovery in the fourth quarter.

Contents of the Provincial Outlook:

• The pandemic has affected industries in different ways, meaning its effects on provincial economies will vary.
• The recovery in Canada looked good over the summer, but it’s expected to flatten in the autumn and winter.
• Canada should be able to avoid another full lockdown, but we do expect localized shutdowns to deal with regional outbreaks.