Canada’s Economy is headed toward Free fall. These are the words of the Macdonald-Laurier Institute which says our economic destination is worse than a recession. The institute’s leading economic index plunged by 1.7 per cent in March. It is a sudden reversal from a slow growth trend and represents the largest single month drop ever tracked by the group. The most dramatically negative indicator came from the record number of new employment Insurance claims. Senior Fellow Philip Cross says, “The speed and depth of this downturn is simply unparalleled.” He says, “This LEI updater suggests that the worst is yet to come for the economy.”

The institute says some indicators of economic health, such as individual and business insolvencies, are likely lagging behind and therefore obscuring the true depth of the economic damage. As a result, the latest LEI update may simply be the first in a long string of bad economic news.

Cross believes that policy-makers have likely underestimated the economic toll caused by strict lockdown measures, and have overestimated their ability to stave off a serious crisis.