BGO: Insights

Perspective Canada - Mid-Year 2021

Written by BGO | Jul 29, 2021 5:30:00 PM

There’s an overwhelming sense of optimism as the rate of vaccination climbs and economies begin to reopen. Canada was slow out of the gate but now leads all G7 countries in rate of first doses and is quickly gaining ground on fully vaccinated rates. Herd immunity will be critical to providing protection against rising variants and preventing further lockdown measures.

Canada’s economy proved resilient through the second COVID-19 wave, with growth surpassing consensus expectations. The third wave led to a notable pullback in economic activity in April and May, due to reimposed lockdown restrictions. But the second half of the year is poised to deliver a boom, underpinned by robust fiscal
stimulus, businesses and schools reopening, workers returning to the office and expectations for consumers to unleash some of their excess income on leisure and travel. According to Oxford Economics, gross domestic product
(GDP) is expected to grow by 6.8% in 2021 and 3.5% in 2022.

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