Statistics Canada to release July GDP, initial estimate showed economy contracting

OTTAWA —
Statistics Canada will say Friday morning how the Canadian economy fared in July.

At the end of August, the agency said its initial estimate for July showed a contraction of 0.4 per cent in real gross domestic product, despite an easing of public health restrictions.

The initial estimate put total economic activity in July about two per cent below pre-pandemic levels recorded in February 2020.

CIBC senior economist Royce Mendes writes that the final figure for July is likely to be better than the initial estimate as a rebound in service-sector activity likely offset weakness in other areas of the economy.

The statistics agency is also expected to provide a first glance at the GDP figure for August.

Royal Bank senior economist Nathan Janzen writes that the August estimate should look better than July’s figure, pointing to a further recovery in spending for the month on high-contact services like restaurants and hotels.

This report by The Canadian Press was first published Oct. 1, 2021.