Canadian Economic News, April 2021 edition

This module provides a concise summary of selected Canadian economic events, as well as international and financial market developments by calendar month. It is intended to provide contextual information only to support users of the economic data published by Statistics Canada. In identifying major events or developments, Statistics Canada is not suggesting that these have a material impact on the published economic data in a particular reference month.

All information presented here is obtained from publicly available news and information sources, and does not reflect any protected information provided to Statistics Canada by survey respondents.

COVID-19 timeline

  • The Government of Manitoba announced on April 1st it was extending the provincewide state of emergency for a period of 30 days. On April 30th, the Government extended the state of emergency for another 30 days.
  • The Government of Nova Scotia announced on April 2nd it was renewing the state of emergency until April 18th. On April 13th, the Government announced that restrictions on the New Brunswick border would be reinstated on April 15th and that people coming from New Brunswick would have to self-isolate upon arrival. On April 16th, the state of emergency was renewed until May 2nd.
  • The Government of Saskatchewan announced on April 7th it was extending the provincial public health orders announced on March 9th, and the Regina and area revisions announced on March 24th, until April 26th. On April 20th, the Government extended all current provincial health orders until May 10th.
  • The Government of the Northwest Territories announced on April 8th it had extended the State of Emergency in the City of Yellowknife until April 22nd. On April 22nd, the State of Emergency was extended until May 6th. On April 13th, the Government announced it had extended the territory-wide Public Health Emergency until April 27th. On April 27th, the Government extended the territory-wide Public Health Emergency until May 11th.
  • The Government of British Columbia announced on April 13th it had formally extended the provincial state of emergency until April 27th. On April 27th, the Government extended the provincial state of emergency until May 11th.
  • The Council of Atlantic Premiers announced on April 13th that given the recent surge in cases of COVID-19 in parts of Atlantic Canada and the emergence of more transmissible forms of the virus, it had agreed to delay the reopening of the Atlantic Bubble by at least two weeks, to May 3rd.
  • The Government of Nunavut announced on April 15th it had extended the territory's public health emergency until April 29th. On April 29th, the Government extended the public health emergency until May 13th.
  • The Government of Canada announced on April 20th that discretionary (non-essential) travel restrictions between the United States and Canada would be extended until May 21st. On April 22nd, the Government of Canada announced it was suspending all commercial and private passenger flights from India and Pakistan for 30 days.

Selected COVID-19 responses

  • On April 1st, the Government of Ontario announced it was imposing a provincewide emergency brake, effective April 3rd for at least four weeks. The Government said measures include:
    • Prohibiting indoor organized public events and social gatherings and limiting the capacity for outdoor organized public events or social gatherings to a 5-person maximum;
    • Restricting in-person shopping in all retail settings, including a 50% capacity limit for supermarkets, grocery stores, and convenience stores, and 25% for all other retail including big box stores;
    • Prohibiting personal care services;
    • Prohibiting indoor and outdoor dining; and
    • Prohibiting the use of facilities for indoor or outdoor sports and recreational fitness (e.g., gyms).
  • The Government also asked Ontarians to limit trips outside the home to necessities such as food, medication, medical appointments, supporting vulnerable community members, or exercising outdoors.
  • On April 7th, the Government declared a third provincial emergency and that, effective April 8th, the Government was issuing a province-wide Stay-at-Home order except for essential purposes, with measures including:
    • Limiting the majority of non-essential retailers to only operate for curbside pick-up and delivery;
    • Restricting access to shopping malls;
    • Restricting discount and big box stores and in-person retail sales to grocery items, pet care supplies, household cleaning supplies, pharmaceutical items, health care items, and personal care items only;
    • Permitting certain stores, including safety supply stores, rental and leasing services, optical stores, vehicle and equipment repair, and telecommunication providers, to operate for in-person retail by appointment only and subject to a 25% capacity limit and restricting allowable hours of operation to between 7 a.m. and 8 p.m.; and
    • Permitting outdoor garden centres and plant nurseries, and indoor greenhouses, to operate with a 25% capacity limit and a restriction on hours of operation to between 7 a.m. and 8 p.m.
  • The Government said schools and childcare will remain open in public health regions where permitted.
  • On April 12th, the Government announced it was moving elementary and secondary schools to remote learning effective April 19th, following the April break.
  • On April 16th, the Government said both the provincial declaration of emergency and the Stay-at-Home order had been extended for an additional two weeks and that it was restricting travel into Ontario from Manitoba and Quebec. The Government also said it intended to implement the following public health and workplace safety measures effective April 17th:
    • Prohibit all outdoor social gatherings and organized public events;
    • Close all non-essential workplaces in the construction sector; and
    • Reduce capacity limits to 25% in all retail settings where in-store shopping is permitted, including supermarkets, grocery stores, and convenience stores.
  • On March 31st, the Government of Quebec announced that effective April 1st, the Bas-Saint-Laurent, Capitale-Nationale, Chaudière-Appalaches and Outaouais were moved to the red level. In addition, the Government said special emergency measures would apply from April 1st until April 12th in the Metropolitan Community of Quebec (including Lévis) and in the city of Gatineau and the MRC des Collines-de-l'Outaouais, including:
    • A curfew in effect from 8 p.m. to 5 a.m.;
    • The closure of primary and secondary schools (online learning); cinemas, theaters and museums; restaurants (except for delivery and take-out counters); and non-essential businesses;
    • Banning businesses from selling non-essential products; and
    • Outdoor sports or leisure activities permitted only with people residing at the same address or by a group of 8 people with distancing.
  • On April 4th, the Government of Quebec announced that given the significant increase in new cases, the above special emergency measure would apply to several sectors of the Chaudière-Appalaches region effective April 5th until April 12th.
  • On April 6th, the Government announced a tightening of health restrictions for the red alert level, effective April 8th, including:
    • Indoor public places closed for the practice of leisure and sports;
    • Gyms are closed;
    • Prohibition to travel to a yellow tier region.
  • On April 8th, the Government announced the extension of special emergency measures until April 18th in Capitale-Nationale, Chaudière-Appalaches and Outaouais regions. The Government also said that effective April 11th until further notice, the curfew in the Montreal and Laval regions will be extended by 1 hour to between 8 p.m. and 5 a.m.
  • On April 13th, the Government announced that the special emergency measures in force would be extended to April 25th for the Quebec Metropolitan Community of the Capitale-Nationale, Chaudière-Appalaches and Outaouais regions.
  • On April 20th, the Government announced that the special emergency measures would be extended until May 2 in the Outaouais and Chaudière-Appalaches regions and in the territory of the Quebec Metropolitan Community.
  • On April 6th, the Government of Alberta announced that it was moving back into Step 1 of COVID-19 restrictions and that effective midnight:
    • Retail services and shopping malls will be limited to 15% capacity;
    • Only one-on-one training with an individual or household is permitted for indoor fitness activities;
    • Outdoor physical activity is allowed with up to 10 people; and
    • Adult performance activities, including dancing, singing, acting, playing a musical instrument and any rehearsal or theatrical performances, are not permitted.
  • The Government also said that effective noon on April 9th:
    • Restaurants would be restricted to providing only takeout, delivery, and patio service.
  • On April 6th, the Government of Nova Scotia announced that effective April 7th:
    • The Newfoundland and Labrador border is opening, and that with this change all residents of Atlantic Canada can go to Nova Scotia without having to self-isolate upon arrival;
    • Malls, retail businesses and fitness facilities can return to operating at 100% capacity, with physical distancing; and
    • Sports practices, training and games, and arts and culture rehearsals and performances can have 75 people.
  • On April 20th, the Government announced it was placing additional restrictions on travel into the province and that effective April 22nd, people from outside Nova Scotia, Prince Edward Island, and Newfoundland and Labrador would not be allowed to enter Nova Scotia unless their travel was essential or they were permanent residents of Nova Scotia.
  • On April 22nd, the Government announced that effective April 23rd the following restrictions would be in place for all areas of Halifax Regional Municipality and some communities on its borders:
    • The indoor and outdoor gathering limit is five;
    • Restaurants and licensed establishments are closed to seated service;
    • Retail businesses and malls can operate at 25% capacity;
    • Personal services such as hair salons, barber shops and spas are closed;
    • Indoor fitness facilities, like gyms and yoga studios, and sport and recreation facilities are closed;
    • No sports practices, training, games, competitions or tournaments;
    • No social events, special events, festivals, arts/cultural events, sports events, faith gatherings, wedding receptions, or funeral visitation or receptions; and
    • Museums, libraries and the Art Gallery of Nova Scotia are closed.
  • On April 26th, the Government announced that in all other parts of the province, the following restrictions were in effect as of April 27th until at least May 20th:
    • The indoor and outdoor gathering limit is 10;
    • No social events, special events, festivals, arts/cultural events, sports events, wedding receptions, or funeral visitation or receptions;
    • Maximum of 10 people indoors or 25 people outdoors for sports practices and training but no games, competitions or tournaments;
    • Maximum of 10 people indoors or 25 people outdoors for arts and culture rehearsals but no in-person performances;
    • Restaurants and licensed establishments operate at 50% capacity, provide service until 11 p.m. and close for seated service by midnight;
    • Retail businesses and malls can operate at 50% capacity;
    • Indoor fitness facilities like gyms and yoga studios and sport and recreation facilities like pools, arenas, tennis courts and large multipurpose recreation facilities can operate at 50% capacity; and
    • Museums and libraries can operate at 50% capacity.
  • On April 27th, the Government announced new restrictions across the province, including:
    • Nova Scotians can only gather indoors or outdoors with their household bubble;
    • No unnecessary travel between communities;
    • All public and private schools are closed, day cares will remain open;
    • Retail stores are closed for in-person service unless those stores provide services essential to life, health, or personal safety, which can remain open at 25% capacity;
    • Restaurants and licensed establishments are closed for dine-in service;
    • Personal services such as hair salons, barber shops and spas are closed; and
    • Indoor fitness facilities like gyms and yoga studios are closed.
  • On April 6th, the Government of Nunavut announced an easing of public health measures across the Kivalliq region. In Arviat, effective April 7th:
    • Indoor gatherings for public community spaces, including arenas and places of worship, may allow 50% of the facility's capacity; and
    • Outdoor gatherings up to 50 people with physical distancing are permitted.
  • For the remaining Kivalliq communities, effective April 7th:
    • Indoor private gatherings are increased to 15 plus household members; indoor gatherings for public community spaces, including places of worship, may allow 75% of the facility's capacity;
    • Public swimming pools, recreation centres, gyms, galleries, museums and libraries may open to a maximum occupancy of 50% capacity;
    • Arenas may open to a maximum occupancy of 50% capacity; and
    • Buildings, all public playgrounds, municipal parks and territorial parks may open.
  • In Arviat effective April 12th:
    • Schools would move to Stage 2 of the 2020-21 Opening Plan for Nunavut Schools.
  • On April 10th, the Government of New Brunswick announced a section of Zone 4 (Edmundston region) would go into lockdown. The Government said people must stay within their single-household bubble, no unnecessary travel in and out of the lockdown area, and schools in the lockdown area will move to online learning only. On April 27th, the Government announced that Edmundston and the Upper Madawaska region would move from lockdown to the Orange level effective April 28th.
  • On April 13th, the Government of Saskatchewan announced that a change to the Public Health Order came into effect limiting household bubbles to immediate households only for all of Saskatchewan and limiting worship gathering sizes to no more than 30 people effective April 16th. The Government also said that revisions made March 24th to Regina and area were in effect until April 26th. On April 20th, the Government said it had extended all current provincial health orders until May 10th and that additional restrictions were in place for Regina and area, including all restaurants and licensed establishments must remain closed for in-person dining.
  • On April 19th, the Government of British Columbia announced that as a result of current levels of transmission in B.C., orders that were set to expire, including current restrictions on restaurants, pubs, bars, and indoor group fitness activities, would be extended for a further five weeks until May 24th. On April 23rd, the Government announced it was introducing travel restrictions and prohibiting non-essential travel between Lower Mainland and Fraser Valley, Vancouver Island, and Northern/Interior.
  • On April 19th, the Government of Manitoba announced new public health orders and that effective April 20th:
    • All households may only have two designated visitors indoors;
    • Outdoor gatherings on public and private property are limited to a maximum of 10 people;
    • Weddings and funerals are reduced to 10 people.
  • The Government also said that effective April 21, retail stores must be limited to one-third capacity and that these changes would be in effect until May 12th.
  • On April 26th, the Government announced new public health orders, effective April 28th until May 26th, including:
    • No visitors will be allowed to private households either indoors or outdoors;
    • No indoor gatherings will be permitted and outdoor gatherings of up to 10 people will be allowed in public outdoor spaces only;
    • Food courts in malls and shopping centres will be required to close; and
    • Retail stores must be limited to 25% capacity of the store, and malls will be limited to 25% of the facility's capacity.
  • On April 19th, the Government of Prince Edward Island announced that until at least May 17th, it was altering some travel into the province, including:
    • Seasonal residents from outside Atlantic Canada planning to travel to PEI in the next four weeks are advised to defer travel until at least May 17th;
    • Rotational workers and truck drivers working outside of Atlantic Canada will be required to self-isolate until they receive their first negative result after arriving in PEI;
    • Everyone arriving in PEI from outside of Atlantic Canada is required to self-isolate for 14 days and will require testing on days 0-1, 4-6, and 9-11.

Transportation

  • The Government of Canada announced that the Canada Enterprise Emergency Funding Corporation (CEEFC) had committed to provide $4 billion in repayable loans and an equity investment in Air Canada of $500 million in Class B Voting Shares and that, as a condition of its agreement, Air Canada had made a number of commitments.
  • Toronto-based Porter Airlines Inc. announced it was resetting its tentative date for resuming flights to June 21st.
  • Calgary-based WestJet Airlines Ltd. announced it would extend its temporary suspension of international sun flights to destinations in Mexico and the Caribbean until June 4th.

Other news

  • The Government of Canada released Budget 2021 on April 19th, which included $101.4 billion over three years in proposed investments, including establishing a Canada-wide childcare and early learning system, extending emergency supports for workers and businesses, establishing a $15 per hour federal minimum wage, and investments in a green recovery and infrastructure. The Government projects a $154.7 billion deficit in 2021-2022 and real GDP growth of 5.8% in 2021.
  • The Bank of Canada announced it held its target for the overnight rate at the effective lower bound of 0.25%. The target for the overnight rate was reduced by 150 basis points during March 2020. The Bank also said that effective the week of April 26th, weekly net purchases of Government of Canada bonds would be adjusted to a target of $3 billion, reflecting the progress made in the economic recovery.
  • Prince Edward Island's minimum wage increased from $12.85 per hour to $13.00 per hour on April 1st.
  • Nova Scotia's minimum wage increased from $12.55 to $12.95 per hour on April 1st.
  • Newfoundland and Labrador's minimum wage increased from $12.15 to $12.50 per hour on April 1st.
  • New Brunswick's minimum wage increased from $11.70 per hour to $11.75 per hour on April 1st.
  • The Government of Saskatchewan released Budget 2021 on April 6th, which included investments in health care, education, infrastructure, and COVID-19 supports. The Government projects a $2.61 billion deficit in 2021-2022 and real GDP growth of 3.4% in 2021.
  • The Government of Manitoba released Budget 2021 on April 7th, which included investments in health care, education, social services, and action on climate change as well as tax relief for small businesses. The Government projects a $1.597 billion deficit in 2021-2022 and real GDP growth of 4.1% in 2021.
  • The Government of British Columbia released Budget 2021 on April 20th, which included new investments in health and mental health services, business supports, affordable housing, childcare, and community infrastructure. The Government projects a $9.7 billion deficit in 2021-2022 and real GDP growth of 4.4% in 2021.
  • Toronto-based Brookfield Asset Management Inc. and Brookfield Property Partners L.P. (BPY) of Bermuda announced they had reached an agreement for Brookfield to acquire all of the limited partnership units of BPY for a total consideration of USD $6.5 billion. Brookfield said the arrangement is expected to close in the third quarter of 2021, subject to approval by a majority of the public unitholders of BPY, in addition to other customary closing conditions including the approval of the Ontario Superior Court of Justice.
  • The Syndicat des débardeurs du port de Montréal announced it would begin a general unlimited strike effective April 26th.

United States and other international news

  • The U.S. Federal Open Market Committee (FOMC) maintained the target range for the federal funds rate at 0.00% to 0.25%. The last change in the target range was a 100 basis points decrease announced in March 2020. The FOMC also said the Federal Reserve would continue to increase its holdings of Treasury securities by at least $80 billion per month and of agency mortgage-backed securities by at least $40 billion per month until substantial further progress has been made toward the Committee's maximum employment and price stability goals.
  • The European Central Bank (ECB) announced (i) the interest rates on the main refinancing operations, the marginal lending facility, and the deposit facility will remain unchanged at 0.00%, 0.25% and -0.50%, respectively; (ii) the net asset purchases under the pandemic emergency purchase programme (PEPP) will continue with a total envelope of €1,850 billion until at least the end of March 2022; and (iii) net purchases under the asset purchase programme (APP) will continue at a monthly pace of €20 billion. The ECB Governing Council said it expects purchases under the PEPP over the current quarter to continue to be conducted at a significantly higher pace than during the first months of this year.
  • The Bank of Japan (BoJ) announced it will apply a negative interest rate of -0.1% to the Policy-Rate Balances in current accounts held by financial institutions at the BoJ and that it will purchase a necessary amount of Japanese government bonds (JGBs) without setting an upper limit so that 10-year JGB yields will remain at around zero percent.
  • The Reserve Bank of Australia (RBA) maintained the targets for the cash rate and the yield on 3-year Australian Government bonds at 0.10%. The last change in the target for the cash rate was a 15 basis points reduction in November 2020. The RBA also maintained the parameters of the Term Funding Facility and the government bond purchase program.
  • The Reserve Bank of New Zealand (RBNZ) kept the Official Cash Rate (OCR), its main policy rate, unchanged at 0.25%. The last change in the OCR was a 75 basis points reduction in March 2020. The RBNZ also kept the Large Scale Asset Purchase and the Funding for Lending programmes unchanged.
  • The Executive Board of Sweden's Riksbank left the repo rate unchanged at 0.00% and said the rate is expected to remain at this level during the forecast period. The Board also decided to continue to purchase assets within the envelope of SEK 700 billion and to offer liquidity within all the programmes launched.
  • On April 1st, OPEC and non-OPEC members announced they had approved the adjustment of the production levels for May, June, and July 2021, agreed upon in the 12th OPEC and non-OPEC Ministerial Meeting (December 2020), with every adjustment being no more than 0.5 mb/d.
  • Washington State-based Microsoft Corp and Nuance Communications, Inc. of Massachusetts announced they had entered into a definitive agreement under which Microsoft will acquire Nuance in an all-cash transaction valued at USD $19.7 billion, inclusive of Nuance's net debt. The companies said the deal is intended to close by the end of the year, subject to approval by Nuance's shareholders, the satisfaction of certain regulatory approvals, and other customary closing conditions.
  • Massachusetts-based Thermo Fisher Scientific Inc. and PPD, Inc. of North Carolina announced that their boards of directors had approved a definitive agreement under which Thermo Fisher will acquire PPD for a total cash purchase price of USD $17.4 billion, including net debt. The companies said the transaction is expected to be completed by the end of 2021, subject to shareholder and customary closing conditions, including the receipt of applicable regulatory approvals.

Financial market news

  • West Texas Intermediate crude oil closed at USD $63.58 per barrel on April 30th, up from a closing value of USD $59.16 at the end of March. Western Canadian Select crude oil traded in the USD $48 to $53 per barrel range throughout April. The Canadian dollar closed at 81.40 cents U.S. on April 30th, up from 79.52 cents U.S. at the end of March. The S&P/TSX composite index closed at 19,108.33 on April 30th, up from 18,700.67 at the end of March.
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