Inclement weather in January slowed down economic growth in Canada as GDP rose 0.1 per cent. (Black Press Media File)

Inclement weather in January slowed down economic growth in Canada as GDP rose 0.1 per cent. (Black Press Media File)

COVID-19 has been impacting Canadian economy since January

But full effects of pandemic won’t be known for months

COVID-19 was impacting Canada’s economy before the current crisis, according to new figures from Statistics Canada, which predicts that the current pandemic “will significantly affect economic activity in March and subsequent months.”

While the future release of economic data should come with the addendum BC (Before COVID-19), figures measuring economic growth in January already bear the imprint of the coronavirus.

Real domestic growth in Canada rose 0.1 per cent in January, as inclement weather in many parts of the country, including British Columbia, labour unrest in Ontario and declining oil prices dampened economic growth across parts of the country and key sectors like energy.

Looming in the background already were the early effects of COVID-19. “In January, effects such as reduced trade with China and advisories against non-essential travel to China affected potential growth,” reads the accompanying analysis of the new figures.

Transportation and warehousing, an industry dependent on trade, also declined in January, dropping 1.7 per cent for the second time in three months. “Air transportation declined 2.7 per cent, as movement of both goods and passengers decreased,” it read. “Mid-January winter storms across many parts of the country caused multiple delays and cancellations at Canada’s busiest airports. The “rapid spread” of COVID-19 leading to travel advisories in the latter part of January coupled with a computer system problem at one of Canada’s largest air carriers also depressed trade.

RELATED: WestJet extends international flight suspensions into May amid COVID-19 pandemic

Mining, quarrying, and oil and gas extraction had also been declining in January 2020 before suffering additional declines in the face of a global supply war between Russia and Saudi Arabia, and declining demand for oil amid slowing economic growth and travel.

The spread of COVID-19 and the responses by various governments (travel restrictions, bans on various kinds of events and activities) have only intensified these trend lines, and Statistics Canada does not paint a pretty picture without citing specific figures.

“Because of these factors, as well as supply chain disruptions for many types of goods, temporary closures of non-essential stores and service providers and the recent lowering of interest rates, the economic effects of the coronavirus outbreak will be deeply felt in subsequent months,” it read.

Statistics Canada implicitly acknowledges that January figures appear in a different context in light of current development, but nonetheless sees value in them.

“While the landscape of the Canadian and world economy has shifted since January, data from the beginning of the year are important in monitoring when and where changes occur over the following months,” it read. “As such, this release and the detailed industry summary serves as a baseline of the Canadian economy for measuring the impact of the COVID-19 outbreak on various industries in the coming months.”


Like us on Facebook and follow @wolfgang_depner

wolfgang.depner@peninsulanewsreview.com

Coronavirus

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

Wayne Allen's graduation photo from Chemainus Secondary School. (Photo submitted)
Brother charged with murder in Chemainus teenager’s Ontario death

Jesse James Allen stands accused in the death of Wayne Allen, a 2020 Chemainus Secondary grad

The frequent disruptions to water service in Chemainus are expected to be a lot less after North Cowichan replaces the Smiley Road water main. (File photo)
Smiley Road water main in Chemainus to be replaced

$890,000 project expected to be completed this spring

Cowichan Tribes open up vaccinations for members who are 40 and older. (File photo)
Cowichan Tribes opens up vaccinations for members 18 and older

Vaccination sessions to be held over weekend

Kim McGregor died in the Feb. 14 hit-and-run accident in Chemainus. (Photo submitted)
Victim identified in Valentine’s Day Chemainus hit-and-run

Kim McGregor grew up in Chemainus and had recently returned to be close to his parents

The Cowichan Valley Regional District will use fire hydrants to flush water systems in Youbou, Honeymoon Bay, Mesachie Lake and Bald Mountain in March. (Robert Barron/Gazette)
Water system flushing in Cowichan Lake communities in March may cause discolouration warns CVRD

Water pipes in Youbou, Honeymoon Bay, Mescahie Lake, and Bald Mountain targeted

Dr. Bonnie Henry leaves the podium after talking about the next steps in B.C.’s COVID-19 Immunization Plan during a press conference at Legislature in Victoria, B.C., on Friday, January 22, 2021. THE CANADIAN PRESS/Chad Hipolito
COVID: 589 new cases in B.C., and 7 new deaths

No new outbreaks being reported Feb. 26

Staff from the Marine Mammal Rescue Centre, passersby, RCMP and Nanaimo Fire Rescue carried a sick 300-kilogram steller sea lion up the steep bluff at Invermere Beach in north Nanaimo in an attempt to save the animal’s life Thursday. (Photo courtesy Marine Mammal Rescue Centre)
300-kilogram sea lion muscled up from B.C. beach in rescue attempt

Animal dies despite efforts of Nanaimo marine mammal rescue team, emergency personnel and bystanders

Cannabis bought in British Columbia (Ashley Wadhwani/Black Press Media)
Is it time to start thinking about greener ways to package cannabis?

Packaging suppliers are still figuring eco-friendly and affordable packaging options that fit the mandates of Cannabis Regulations

A crossover utility vehicle smashed through the front of a business on Bowen Road on Friday evening. (Chris Bush/News Bulletin)
Vehicle smashes all the way inside business in Nanaimo

No serious injuries reported after incident at Venue Financial Centres on Friday

Gina Adams as she works on her latest piece titled ‘Undying Love’. (Submitted photo)
‘Toothless’ the kitty inspires B.C. wood carver to break out the chainsaw

Inspired by plight of a toothless cat, Gina Adams offers proceeds from her artwork to help animals

B.C. Finance Minister Selina Robinson presents bill to delay B.C.’s budget as late as April 30, and allow further spending before that, B.C. legislature, Dec. 8, 2020. (Hansard TV)
How big is B.C.’s COVID-19 deficit? We’ll find out April 20

More borrowing expected as pandemic enters second year

The first of 11 Dash 8 Q400 aircraft's have arrived in Abbotsford. Conair Group Inc. will soon transform them into firefighting airtankers. (Submitted)
Abbotsford’s Conair begins airtanker transformation

Aerial firefighting company creating Q400AT airtanker in advance of local forest fire season

RCMP say a woman turned herself in to police after hitting a pedestrian and fleeing the scene of the accident in downtown Nanaimo on Friday morning. (File photo)
Driver flees, then turns herself in after hitting pedestrian in downtown Nanaimo

RCMP say woman was struck in marked crosswalk after driver ran red light

The Canada Revenue Agency says there were 32 tax fraud convictions across the country between April 2019 and March 2020. (Pixabay)
Vancouver man sentenced to 29 months, fined $645K for tax evasion, forgery

Michael Sholz reportedly forged documents to support ineligible tax credits linked to homeownership

Most Read