Canada economy seen jumping by 0.7% in June as COVID-19 measures were lifted

FILE PHOTO: People walk in the Eaton Centre shopping mall, as the provincial phase 2 of reopening from the coronavirus disease (COVID-19) restrictions begins in Toronto, Ontario, Canada June 24, 2020. REUTERS/Carlos Osorio/File Photo

OTTAWA (Reuters) -The Canadian economy most likely expanded by 0.7% in June as businesses reopened after shutdowns imposed to help fight the coronavirus pandemic, Statistics Canada said on Friday.

“Growth in retail trade and accommodation and food services were influenced by the easing of public health measures in many provinces in June,” Statscan said. There were also gains in manufacturing and mining, quarrying, and oil and gas extraction.

Statscan also released a flash estimate saying second quarter annualized growth would be 2.5%. This is above the Bank of Canada’s 2.0% forecast issued on July 14.

The economy shrank by 0.3% in May, matching an forecast from analysts polled by Reuters.

In May, 12 of 20 industrial sectors posted decreases, with services-producing industries down by 0.2% and goods-producing industries contracting by 0.4%.

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