Canada: Economy to contract by a record 36.3% in Q2 – TDS

Previewing next week’s Gross Domestic Product (GDP) report from Canada, “we look for the economy to contract by a record 36.3% in Q2 following the historic plunge through March/April,” said TD Securities analysts.

Key quotes

“Output fell 18% below pre-pandemic levels by April but momentum has picked up since with a 4.9% increase in May GDP, and we look for growth to accelerate with a 6.7% increase in June.”

“This is well above StatCan tracking (5%) and would provide a solid handoff to Q3.”