The Canadian economy is recovering slower than its peers despite elevated inflation. BMO chief economist Douglas Porter indexed the GDP for Canada, the US, and Australia in Q3 2021. All three economies began as a v-shaped recovery, but Canada is the only one not to hit pre-pandemic levels. Despite signs of a strong economy, like low unemployment and rising inflation, Canada’s GDP is struggling to reach its pre-pandemic glory.
The US Had A V-Shaped Recovery And Has Nearly Fully Recovered
The US economy had a few hiccups over the past couple of years, but they managed a v-shaped recovery. At the depths of the pandemic, the country’s GDP managed a smaller contraction than Canada. As of Q3 2021, American output is 1.4% above the pre-pandemic level.
“Given that the US economy ‘normally’ grows by around 2% per year, the output is thus still a bit more than 2 ppts shy of fully returning to full capacity,” observed BMO…read more.