Ontario Construction News staff writer
After a significant rebound in the second half of 2020, Canada’s economy once again faces a setback as it will contract by 2.5 per cent in the first quarter of this year according the Bank of Canada’s latest projections. This marks the first quarterly contraction since the first wave of the pandemic in Q2 last year.
“As 2021 begins, Canada still faces powerful headwinds. COVID-19 numbers are up, restrictions on our activities remain and may even increase, and we face great economic uncertainty,” said Dr. Trevin Stratton, chief economist and vice president of policy at the Canadian Chamber of Commerce.
“We will likely be in this phase well into March, when we expect the lockdowns to be eased across the country. During this period, we need to provide the right kind of support to individual Canadians and to businesses to get them through the lockdowns, recognizing that neither group is in the same financial position as it was in March 2020.”
That means continuing programs like the Canadian Emergency Wage Subsidy, safely reopening schools and ensuring that there is available childcare so people – particularly women — can return to work once restrictions are eased. It means improvements to rental subsidy programs and targeted support for the hardest hit sectors.
“As a new wave of infections weighs on economic activity, Canada must ensure that businesses remain there to propel the economic rebound projected for later this year. Just as every downturn is first felt on Main Street when the lights begin to go out, every recovery starts when the open signs begin to reappear,” Stratton concluded.