Inclement weather in January slowed down economic growth in Canada as GDP rose 0.1 per cent. (Black Press Media File)

COVID-19 has been impacting Canadian economy since January

But full effects of pandemic won’t be known for months

COVID-19 was impacting Canada’s economy before the current crisis, according to new figures from Statistics Canada, which predicts that the current pandemic “will significantly affect economic activity in March and subsequent months.”

While the future release of economic data should come with the addendum BC (Before COVID-19), figures measuring economic growth in January already bear the imprint of the coronavirus.

Real domestic growth in Canada rose 0.1 per cent in January, as inclement weather in many parts of the country, including British Columbia, labour unrest in Ontario and declining oil prices dampened economic growth across parts of the country and key sectors like energy.

Looming in the background already were the early effects of COVID-19. “In January, effects such as reduced trade with China and advisories against non-essential travel to China affected potential growth,” reads the accompanying analysis of the new figures.

Transportation and warehousing, an industry dependent on trade, also declined in January, dropping 1.7 per cent for the second time in three months. “Air transportation declined 2.7 per cent, as movement of both goods and passengers decreased,” it read. “Mid-January winter storms across many parts of the country caused multiple delays and cancellations at Canada’s busiest airports. The “rapid spread” of COVID-19 leading to travel advisories in the latter part of January coupled with a computer system problem at one of Canada’s largest air carriers also depressed trade.

RELATED: WestJet extends international flight suspensions into May amid COVID-19 pandemic

Mining, quarrying, and oil and gas extraction had also been declining in January 2020 before suffering additional declines in the face of a global supply war between Russia and Saudi Arabia, and declining demand for oil amid slowing economic growth and travel.

The spread of COVID-19 and the responses by various governments (travel restrictions, bans on various kinds of events and activities) have only intensified these trend lines, and Statistics Canada does not paint a pretty picture without citing specific figures.

“Because of these factors, as well as supply chain disruptions for many types of goods, temporary closures of non-essential stores and service providers and the recent lowering of interest rates, the economic effects of the coronavirus outbreak will be deeply felt in subsequent months,” it read.

Statistics Canada implicitly acknowledges that January figures appear in a different context in light of current development, but nonetheless sees value in them.

“While the landscape of the Canadian and world economy has shifted since January, data from the beginning of the year are important in monitoring when and where changes occur over the following months,” it read. “As such, this release and the detailed industry summary serves as a baseline of the Canadian economy for measuring the impact of the COVID-19 outbreak on various industries in the coming months.”


Like us on Facebook and follow @wolfgang_depner

wolfgang.depner@peninsulanewsreview.com

Coronavirus

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

Just Posted

Influx of cross-border visitors to Peace Arch Park sparks concern COVID-19 could spike

Police, parks officials say patrols, education and signage have all been increased

Barn catches fire in Surrey

Fire department says ‘pressurized containers’ inside the structure

Facing changes together: Your community, your journalists

The COVID-19 pandemic has changed the world in ways that would have… Continue reading

What June 1 will look like at Surrey schools

High school students following a ‘tutorial model’ where they sign up through a set schedule of times

South Surrey church to host drive-thru food-donation station

Items dropped off to Mount Olive Lutheran Church to benefit Surrey Urban Mission program

Only four new COVID-19 cases, 228 active across B.C.

Health officials watching as activities ramp up

Feds looking at ways to reunite families amid COVID-19 border restrictions with U.S.

Some families with members of dual-citizenship have become separated due to the pandemic

Condition in kids with possible COVID-19 link being studied in Canada

This month, the U.S. Centers for Disease Control and Prevention issued an alert to doctors about MIS-C

‘I knew what he wanted’: Kootenay man spends hours in tree as black bear patrols below

Francis Levasseur is no stranger to the outdoors, but a recent run-in with a bear caused quite a scare

COVID cancelled their wedding plans, so they married on a BC mountaintop

Ceremony was live streamed to friends and family around the world

Trudeau acknowledges racial unrest in U.S.; ‘We also have work to do in Canada’

‘Anti-black racism, racism, is real; it’s in the United States, but it’s also in Canada,’ Trudeau says

State of Local Emergency declared for Boundary as communities brace for river flooding

Warm weather and heavy rain could cause sections of Kettle River system to swell beyond 2018 levels

Large cruise ships barred from Canadian waters until end of October: Garneau

Last year 140 cruise ships brought more than two million visitors to Canadian ports

Minneapolis cop who knelt on man’s neck charged with murder

Arrest comes after three days of protests, which escalated in violence as demonstrators torched a police precinct

Most Read

l -->