Canadian Economy to Contract by 7% in 2020

Moody’s Investors Service expects the Canadian economy to contract by 7% in 2020 due to the COVID-19 pandemic, Reuters reported.

Canadian provinces are expected to stabilize their rising debt burdens once economic growth resumes, according to Moody’s, however, the rating agency sees all 10 provinces posting deficits in the fiscal year (FY) that began in April.

The most recent overall Business Outlook Survey indicator fell sharply, with most constituent indicators declining to levels well below their historical averages, according to the Bank of Canada (BoC) Business Outlook Survey for the summer of 2020.

Businesses in Canada expect weakness in domestic and foreign demand due to the effects of the COVID‑19 pandemic and the low oil prices.