Canada's economy down record 5.4 percent in 2020

A woman crosses a street in Niagara Falls, Ontario, Canada, on March 2, 2021. Canada's gross domestic product shrank 5.4 percent in 2020, the worst year for the country's economy since the economic record keeping began in 1961, according to Statistics Canada on Tuesday. The country's worst economic output was due to the first wave of COVID-19 which swept across the country, shutting down businesses and causing millions of people out of work in March and April of 2020. (Photo by Zou Zheng/Xinhua)

OTTAWA, March 2 (Xinhua) -- Canada's gross domestic product shrank 5.4 percent in 2020, the worst year for the country's economy since the economic record keeping began in 1961, according to Statistics Canada on Tuesday.

The country's worst economic output was due to the first wave of COVID-19 which swept across the country, shutting down businesses and causing millions of people out of work in March and April of 2020.

Canada's gross domestic product, including the total value of all goods and services it produced, grew by 2.3 percent in the last quarter of 2020, but that was nowhere near enough to offset the record-setting plunge it experienced during the first wave.

Since early summer last year, Canadian economic activity has slowly recovered.

The economy grew at an annualized rate of 9.6 percent in the fourth quarter of last year, down from an annualized growth rate of 40.6 percent in the third quarter.

However, despite the better-than-expected result for the quarter as a whole, Statistics Canada said total economic activity in December 2020 was about three percent below the pre-pandemic level in February 2020.

For comparison purposes, Canada's economy contracted almost twice as much as the United States did during the COVID-19 pandemic, despite the latter seeing far more cases per capita.

For January 2021, Statistics Canada said its early estimate was for growth in the economy of 0.5 percent, adding that wholesale trade, manufacturing and construction sectors led the increase while retail trade fell to start the year.