COVID-19 Travel Restrictions To Cost Canadian Economy Up To $28Bln - Statistics Agency
TORONTO (UrduPoint News / Sputnik - 23rd October, 2020) The novel coronavirus-induced travel restrictions are expected to cost the Canadian economy up to $28 billion in damages and 500,000 jobs, the statistics agency said on Friday.
"The travel restrictions imposed to contain the spread of the virus are estimated to lead to a reduction in Canada's gross domestic product (GDP) in the range of $27.9 billion [$21.2 billion USD] to $37.1 billion [$28.2 billion USD] and to the loss of 400,000 to 500,000 jobs in 2020," Statistics Canada said in a report.
The direct impact on the tourism industry is estimated to be between $13.4 billion and $17.7 billion with an associated loss of 306,000 to 406,000 jobs, the report said. When taking into account the indirect impact on the Canadian economy, the restrictions are expected to total $7.8 billion to $10.5 billion in additional lost economic opportunity and could contribute to up to 143,000 lost jobs.
Year-over-year, the potential lost economic activity could see the Canadian economy contract by as much as 1.7 percent - or 14% of the total decline in GDP this year, the International Monetary Fund (IMF) and the Organization for Economic Co-operation and Development (OECD) estimated.
Speaking to reporters on Friday, Prime Minister Justin Trudeau said that details about industry-specific aid are "under discussion and in reflection," and again highlighted the aid available to businesses through general economic stimulus programs.
Shadow Minister of Finance Pierre Poilievre called the potential damage "astonishing."