Canada Barely Avoids Recession
Post written by Gerry Fung (Northbridge Consultants)
Canada narrowly avoided a recession in the first half of this year as the economy (GDP, or Gross Domestic Product) edged up by a weaker-than-expected rate of 0.3 per cent in the second quarter, following a revised 0.8 per cent drop in the previous three-month period. Most analysts had expected second-quarter growth of 0.6 per cent between April and June from with the second quarter in 2007.
A recession occurs when declines in GDP are reported in two consecutive fiscal quarters. Technically, our economy was able to avoid a recession by the slimmest of margins. However, our economy continues to be held back by a widespread contraction in the manufacturing industry, and significant declines in the energy sector.
September 3rd, 2008 at 10:49 am
Update: The Bank of Canada kept interest rates unchanged for the third consecutive monetary policy date Wednesday despite acknowledging that both economic growth and inflation are lower than it had projected last month.
http://www.thestar.com/Business/article/489658
September 3rd, 2008 at 10:53 am
Traditionally, we lag the US economy by several months. Since the US is the largest purchaser of our goods, a downturn was bound to happen.