Global Markets: Worst quarter ever for Canada

But economy makes gains in June, July

By MarketsFarm

WINNIPEG, Aug. 28 (MarketsFarm) – The following is a glance at the news moving markets in Canada and globally.

– Predictions by economists of the Canadian economy having the worst quarter on record proved to be true on Friday. Statistics Canada reported the country’s GDP plummeted by an annualized 38.7 per cent in the second quarter. That was only a pinch better than the 40 per cent drop the economists had projected. Of the dramatic fall in the GDP, a large chunk of it came during April as a result of the COVID-19 pandemic. Another report from the federal agency was also released today and showed 6.5 per cent economic growth in June and three per cent in July. However, Canada isn’t expected to fully recover from the pandemic’s devastating economic impact until sometime in 2022.

– Japan’s Prime Minister, Shinzo Abe, announced his resignation Friday citing health reasons. The 65-year-old prime minister, who has suffered from ulcerative colitis since he was a teenager, said his condition has recently intensified. This marks the second time Abe has resigned, having served briefly as prime minister for a year before resigning in 2007 due to his colitis. Abe has been leader of Japan’s right-leaning Liberal-Democratic Party and prime minister since 2012. He’s noted for boosting Japan’s military spending, monetary easing and fiscal stimulus. Abe will remain in power until a successor is selected.

– United States President Donald Trump closed the four-day Republican National Convention on Thursday evening with a series of unfounded accusations, something that has become the trademark of his presidency. As Trump accepted his party’s nomination, he deemed Democratic rival Joe Biden as a “Trojan horse for socialism” and accused the former Vice-President of being “the destroyer of America’s greatness.” Trump went on to state, “if the Left gains power, they will demolish the suburbs, confiscate your guns and appoint justices who will wipe away your Second Amendment and other constitutional freedoms.”

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