The Impact of COVID-19 on the Private Sector
Canada’s private sector comprises 1.2 million employer businesses, of which 98% are small businesses (less than 100 employees). The private sector accounts for roughly 93.3% of Canada’s GDP. Amid COVID-19, widespread shutdowns and reduced household spending caused real GDP to fall 2.1% in Q1 2020. In several sectors, more than 60% of businesses laid off more than half their workforce e.g. arts, entertainment and recreation, and accommodation and food services.
Canadian companies which were heavily reliant on supply chains had to complete re-examine their business processes. Others began transitioning to modern techniques and digitization to improve operations. Massive increases in unemployment contributed to less spending power.
Business research and development on COVID-19 solutions could be the key to curb the negative outcomes of the pandemic. Find out more insights in Global Advantage’s briefing deck, “Impact of COVID-19 on Canada’s Private Sector”, such as impacts of the pandemic on Canada’s key industries, access to risk capital, and on households and global markets.