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.