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Canada February GDP flat due to teachers strike, rail blockades, COVID-19

Published 2020-04-30, 09:47 a/m
© Reuters. FILE PHOTO: Yonge and Dundas Square in Toronto, Ontario, Canada

By Kelsey Johnson

OTTAWA (Reuters) - The Canadian economy stalled in February as a teacher's strike in Ontario and the global spread of the coronavirus disrupted the movement of people and goods, Statistics Canada said on Thursday.

Analysts in a Reuters poll had forecast an increase of 0.1% in February, matching the 0.1% rise seen in January.

Statscan said the global spread of the coronavirus, which forced officials to shutter non-essential businesses across Canada beginning in mid-March, affected Canada's growth potential in February because of disruptions in global supply chains and international travel.

Further economic disruptions will be reflected in the March data. Statistics Canada said in a flash estimate released earlier this month that it believes data will show the Canadian economy shrank a record 9% in March as the coronavirus pandemic forced shutdowns.

In February, Statscan said educational services fell 1.8%, the biggest decline since June 2014, due to intensifying rotating strikes by elementary and secondary school teachers in Ontario.

Meanwhile, the country's transportation and warehousing sector contracted 1.1% in February, as seven of the 10 subsectors posted declines. Rail transportation fell 5.1% on the month as protesters blocked rail lines across the country, while air transportation fell 2.6% as air carriers canceled some international flights.

© Reuters. FILE PHOTO: Yonge and Dundas Square in Toronto, Ontario, Canada

In a separate release, Statistics Canada said Canadian producer prices fell 0.9% in March from February on lower energy and petroleum prices, while raw material prices plummeted 15.6%.

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