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In fact, people have long expected the economic contraction caused by the epidemic, but they did not expect that last year, Canada handed in the worst answer ever.
By contrast, although the epidemic in the United States is much more serious than in Canada, the Canadian economy shrank almost twice as much as the United States during the outbreak.
The report shows that Canada’s GDP actually showed a growth trend of 2.3% in the fourth quarter of 2020, but this is far from offsetting the impact of the epidemic on the Canadian economy in the first half of last year.
During March and April 2020, a large number of real economy closed down, countless enterprises were “caught” unprepared by the sudden outbreak of the COVID-19 epidemic, and finally closed down because they could not survive.
The Canadian Federation of Independent Enterprises (CFIB) conducted a survey earlier this year, saying that in the worst-case scenario, more than 200000 small businesses closed permanently because of the COVID-19 pandemic, and nearly 3 million jobs were endangered.
For those enterprises and businesses in trouble, profit is not the primary goal during the epidemic, persistence is the best hope.
Fortunately, after the summer, as the blockade relaxed and people returned to work, the Canadian economy began to grow slowly and steadily.
The start of COVID-19 vaccine has also made economists full of confidence in Canada. As a result of the promotion of the immunization program, provinces are gradually relaxing epidemic prevention restrictions. COVID-19 ‘s confirmed cases have decreased significantly in the past two months, and economists predict that the Canadian economy will achieve overall growth soon.
What is interesting is that despite Canada’s poor overall economic performance last year, many Canadians have more household income than before the pandemic, and the housing market is unexpectedly hot!
Although the income of many Canadian households fell sharply at the beginning of the epidemic, if you look back on a year-by-year basis, you will find that household wealth has increased in almost all income groups, according to the report.
After a rough first quarter, the household income of Canadians began to rise. This is inseparable from all kinds of benefits distributed by the government during the epidemic.
Among them, young families and lowest-income families benefited the most, with the largest increase in household income.
The government has been soft in handing out money, and many families earn more during the outbreak than they normally did before the pandemic.
By the second quarter, some people had received a subsidy of about C $3000 more than their usual salary or self-generated income through various benefits. Because of this, some families saved a sum of money unexpectedly after a difficult year last year.
During the outbreak, financial institutions relaxed credit conditions, allowing low-income groups and young families to get loans quickly, and Canadians “encouraged” by low interest rates began to look to the housing market.