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Measures to contain the virus have upended supply chains and financial markets and weighed on commodity prices, creating a perfect storm for the Canadian economy, per the Royal Bank of Canada.

Key quotes

“Given the hit to both the services and goods-producing sectors, we expect real GDP to contract at a greater than 30% annualized pace in the current quarter.”

“Canada’s unemployment rate will likely average 14½% in the second quarter and ease toward 8% by year-end.”

“Canada’s currency is likely to remain around 70 US cents in the near-term as uncertainty about the depth and duration of the crisis sees investors gravitate to the safety of US dollars.”