(The Canadian Press)

Economy grew 4.5% in May, Statistics Canada says

Motor vehicle and car sales contributed the most to the retail growth

Statistics Canada says the economy grew by 4.5 per cent in May as businesses began to reopen after severe lockdowns of March and April.

The average economist estimate was for a 3.5 per cent increase in gross domestic product for May, according to financial data firm Refinitiv.

The national data agency says rebounds in May were seen across multiple industries with the easing of COVID-19 restrictions, including retail trade that registered a 16.4 per cent bump to mark its largest monthly increase since comparable readings began in 1961.

Motor vehicle and car sales contributed the most to the retail growth. Statistics Canada says the sector would have grown by 11.4 per cent had they been excluded from calculations.

In a preliminary estimate for June, the agency says the economy continued to pick up steam, with a five-per-cent increase for the month.

Despite the two months of growth after two months of negative readings, Statistics Canada’s preliminary estimate is that economic output contracted by 12 per cent in the second quarter compared to the first three months of 2020.

The June and second-quarter figures will be finalized late next month.

CIBC senior economist Royce Mendes says in a note that a 12-per-cent drop in the second quarter would be the largest decline ever by a long shot, even if such a decline was expected.

The Bank of Canada’s most recent economic outlook expected the second quarter of 2020 to be worse than the first, estimating a three-month drop in GDP of 14.6 per cent.

Overall, the central bank expected an economic contraction of 7.8 per cent this year, warning that after an immediate turnaround as restrictions eased, a recovery would be long and bumpy with some businesses and jobs not surviving the downturn.

Statistics Canada says economic activity still remained 15 per cent below pre-pandemic level despite the gains over May as business activity was slowly allowed to resume.

The Canadian Press

Like us on Facebook and follow us on Twitter.

Want to support local journalism? Make a donation here.

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

Here are Kitimat’s 10 worst streets and intersections for collisions

A look at the top 10 roads and intersections for crash numbers in Kitimat.

Pretivm Resources reports fatality at Brucejack mine

The isolated incident occurred last Friday, and the employee passed away on Sunday in hospital

QUIZ: How much do you know about British Columbia?

On this B.C. Day long weekend, put your knowledge of our province to the test

“How many more years is this going to continue?”: Kitimat resident wants better District response to front yard sinkholes

The sinkholes are caused by an aging storm sewer, which the District says they are working to fix.

In Our Valley: Louise Barbetti

Louise Barbetti has spent her life dedicated to the welfare of the Haisla students and community.

B.C. records 146 new COVID-19 cases through long weekend

More that 28 people tested positive for the virus each day since Friday

Two people die in propane heated outdoor shower near Princeton

Couple was attending a long weekend gathering

Study shines light on what makes LGBTQ+ youth feel safe in a community

The study goes beyond looking at school or family supports

Alberta to require masks at schools this fall, but still no mandate in B.C.

B.C. students are also set to return to classrooms in September

B.C. to allow customers to buy cannabis online for in-store pickup at private shops

Age verification will still be required inside the store

30% of British Columbians would ‘wait and see’ before taking COVID vaccine: poll

Some are concerned about side effects, while others don’t think the virus is a big deal

What exactly is ‘old growth’ B.C. forest, and how much is protected?

Forests minister Doug Donaldson doesn’t support ‘moratorium’

Don’t leave your hand sanitizer in the sun and other tips to stay COVID safe this summer

Being mindful of staying outside and keeping hand sanitizer, sunscreen out of the sun recommended

Canadians can travel to Hawaii in September; no quarantine with negative COVID test

Travellers will be required to pay for their own tests prior to arriving

Most Read