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Toronto/Canadian-Media: Canadian Federation of Independent Business (CFIB) said in a report that one-sixth of Canadian small businesses impacted by the COVID-19-related restrictions are considering to close for good, potentially putting 2.4 million jobs at risk.
Great depression in Canada's economy. Image credit: Wikipedia
“One in six (181,000) Canadian small business owners are seriously contemplating permanently closing, putting more than 2.4 million jobs at risk (20 per cent of private sector jobs),” the report said on Thursday.
Calling Canada’s COVID-19 response a “mess”, CFIB President and CEO Dan Kelly has is questioning the effectiveness of lockdown measures in place across much of the country which could potentially impact as few as 71,000 or as much as 222,000 businesses to close permanently by the end pandemic
Thursday’s estimates are in addition to the 58,000 businesses that closed up shop in 2020, the report added.
Canada’s economic recovery is expected to be further complicated due to resurgent coronavirus pandemic.
Bank of Canada Governor Tiff Macklem said on Wednesday that he expects the country’s economy to contract by 2.5 percent in the first quarter of 2021 and warning of steeper declines if restrictive measures are extended or strengthened.