StatCan: Economy grew 0.8% in October, sees gain in November

OTTAWA — The Canadian economy kept up its streak of monthly gains in October and appears to have done so again in November, which has left total economic activity close to where it was before COVID-19 hit.

While the labour market has since rebounded from steep losses seen over March and April of 2020, the same can’t be said of economic output.

Statistics Canada reported Thursday that total economic activity in October was 0.4 per cent below pre-pandemic levels recorded in February 2020, with 0.8 per cent GDP growth for the month.

Preliminary data pointed to another gain in November that Statistics Canada said would leave the gap at just 0.1 per cent.

BMO chief economist Douglas Porter said getting GDP back to where it was in February 2020 is only one economic bellwether, but wouldn’t necessarily mean a full recovery once accounting for where the economy should be with population growth.

He warned that closing the gap could take a little longer because of an expected setback over December and January on the back of renewed public health restrictions.

“It’s just one sign along the road to recovery and … we’re likely going to have to repair more damage because of these latest restrictions in the coming year,” Porter said.

Heading into the Omicron storm, the Canadian economy posted its fifth straight monthly gain with October’s growth.

The 0.8 per cent showing matched the preliminary estimate released last month.

Gains for the month were seen across most sectors, including manufacturing whose rebound of 1.8 per cent in October more than offset a September contraction.