According to a Bloomberg survey among economists, an increase in the number of COVID-19 cases in Canada will only delay the country’s recovery and is unlikely to have a lasting effect on its ability to grow in the medium term.
Canada’s gross domestic product is expected to grow 2.6% on a yearly basis for the six months through the end of March, down from its previous forecast of 3.3%, the survey showed. That will be fully offset by stronger growth starting in the second quarter.
Forecasts suggest that next year’s mass vaccination will arouse a recovery already stalled by the second batch of COVID-19. Household consumption, affected by the closure of new areas to control the spread of the virus, especially in the financial capital Toronto, is now back even stronger in the second half of 2021.
Economists found GDP grew an average of 5.4% annually in the last three quarters of 2021, significantly higher than the 3.8% average in the November survey.
However, investment is still a concern. Economists have lowered their forecast for an average investment decline to 1.7% annually for the next six months, from an earlier 5.5% increase.
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