News Analysis
While some economists view the current economic slowdown as mild compared with past recessions, they warn that stagnant per capita GDP and rising debt have left Canada in a weaker position to weather deteriorating economic conditions.
Statistics Canada reported that Canada’s GDP shrank for two straight quarters on an annualized basis as of last month, meeting the common definition of a technical recession. However, many economists say the decline lacks the widespread job losses, collapsing consumer demand, or sharp drops in economic activity associated with major recessions.
The C.D. Howe Institute’s Business Cycle Council said last week that it’s too early to conclude the country has entered a recession. The council pointed out in a June 5 note that the cumulative contraction over the two quarters amounted to just 0.28 percent, far smaller than declines of previous Canadian recessions. For example, GDP declined by between 3.4 percent and 12.7 percent during the last four recessions….