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The shortest and deepest recession since the Great Depression has come to an end.

COVID-19 led Canada into an unprecedented recession in the first quarter of 2020. Since May 2020, Canada has experienced broad economic growth, both in terms of real GDP and employment. GDP growth has been relatively steady and widespread across sectors. Employment growth has been more variable due to several rounds of lockdowns in different provinces.

Though not quite back to February 2020 levels, both real GDP and total employment are stronger today than they were in December 2020. In light of this sustained recovery, any future pronounced, pervasive, and persistent economic downturn should be considered a new recession, rather than a continuation of the recession that began in March of 2020.

For more information, please read our latest Business Cycle Council Communique, “C.D. Howe Institute Business Cycle Council Declares an End to the COVID-19 Recession”.