Canadians have a lot to be proud of when it comes to our COVID-19 response.
Not only has Canada slowed its daily number of new cases to less than 500, but the economy is also on the mend. In fact, it is growing almost twice as fast as the U.S.’s economy.
According to forecasts by Canada’s six largest banks, the country’s economy is set to grow by 36 per cent this quarter compared to an estimated 20 per cent in the United States.
On top of that, in July, Canada’s economic activity recovered to about 95 per cent of pre-pandemic levels thanks to a surge in employment, housing sales and credit card spending, BMO Capital Markets said.
“The phased reopening of the Canadian economy, combined with its lower starting point due to stricter public health measures, will mean a more vigorous bounce-back in Canada,” Matthieu Arseneau, deputy chief economist at National Bank Financial, told Reuters.
Canada’s provinces began slowly re-opening their economies in stages back in May. The federal government also announced over $300 billion in wage subsidies, income support and more.
“The extraordinary amount of fiscal support that has been put in place has laid the foundation for the recovery that we’re starting to see toward the end of (quarter two) and that we think is continuing in (quarter three),” Josh Nye, senior economist at Royal Bank of Canada, added.
While Canada’s coronavirus cases have significantly decreased from a peak in May of about 1,800, our neighbours to the south have seen a huge spike that has caused many states to put the re-opening of their economies on hold.
To date, the U.S. has upwards of 5.5 million COVID-19 cases while Canada has about 123,000.