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Data released on Wednesday showed the economy expanded at a 0.4% rate in October. According to National Bank of Canada analysts point out that the real question remains whether the recovery can be sustained, especially with more stringent lockdown measures to control the spread of coronavirus. 

Key Quotes:

“Real GDP continued to recover in October, gaining 0.4% m/m, a result slightly above the +0.3% print expected by consensus.”

“Canadian GDP registered yet another advance in October but the economic recovery still remains uneven. A slew of sectors have surpassed their pre-pandemic peaks, having shrugged off the COVID-19 shock while others continue to lag.”

“While the economic rebound is likely to have extended into November – Statistics Canada advance estimate suggests production expanded another 0.4% in the month – the gap between the best and worst performing industries is likely to endure until vaccines can usher in a general return to normal.”

“Looking further ahead, the real question remains whether the recovery can be sustained, especially with more stringent lockdown measures to control the spread of COVID-19. All in all, and taking into consideration recent news about the evolution of the virus (U.K.) this suggests taking a cautious view going into 2021.”