Going digital has helped the economy through COVID-19

We’re on the road to recovery

The Canadian economy is starting to bounce back from the pandemic.

Lockdown measures have reduced case numbers, and the fast-tracked vaccination rollout is reason for optimism. The economy is growing, household spending is up, and global prices of oil and other commodities are rising. But Canada observed weak employment numbers this spring, as the second and third waves of the pandemic posed setbacks.

The inflation story, though, is a bit more complicated than usual. Prices have rebounded from 2020 and, in some cases, have risen much higher. Inflation is now above our 2 percent target—around 3.5 percent. This is mainly because inflation is measured by comparing today’s prices with those from last year. In this case, that’s when the pandemic caused prices to plummet.

News – Bank of Canada