Recent revisions to Canada's GDP data by Statistics Canada have revealed a significantly stronger economic recovery than previously understood. According to BMO's chief economist, Douglas Porter, the revisions indicate a 1.5% increase in output since the end of 2020, with overall GDP growth since March 2020 surpassing 7% [78e3f106]. This marks a substantial adjustment, as the new data suggests that output grew 20% more than earlier reports indicated, effectively 're-writing' the narrative surrounding the pandemic's impact on the economy [78e3f106].
The revisions highlight that sectors most severely affected by the pandemic, such as air travel and hospitality, have now been reported as fully recovered [78e3f106]. However, discrepancies remain between the revised GDP figures and other economic indicators, including unemployment rates and downtown activity levels, suggesting that while the overall economy shows signs of recovery, certain areas may still be lagging behind [78e3f106].
In a broader context, the OECD's recent report indicated a GDP growth of 0.5% for the third quarter of 2024, with Canada experiencing a slowdown to a growth rate of 0.2% [2524ccb0]. This mixed economic landscape underscores the complexities of recovery as countries navigate inflationary pressures and varying domestic policies. The Canadian economy's resilience, as evidenced by the recent GDP revisions, provides a more optimistic outlook amidst these challenges [78e3f106].