Technical Recession Confirmed in Canada, Signs of Better Days Coming

Canada is in a technical recession, but there is light at the end of the tunnel.
Technical Recession Confirmed in Canada, Signs of Better Days Coming
Pumpjacks at work near Halkirk, Alta. in this file photo. The fall in business investment in the oil patch had a big impact on Q2 GDP in Canada. The Canadian Press/Larry MacDougal
Rahul Vaidyanath
|Updated:

Canada is in a technical recession, but there is light at the end of the tunnel.

The inevitable was confirmed when Statistics Canada announced on Sept. 1 that Canadian Q2 real GDP fell 0.5 percent, marking two straight quarters of falling GDP. The first quarter GDP’s decline was revised lower to -0.8 percent from -0.6 percent. Overall, the extent of the decline is not as bad as economists’ consensus forecasts.

The other good news is June’s GDP marked the first month of positive growth of 2015, rising by 0.5 percent. This bodes well for the rebound in Q3 GDP that policymakers expect.

The investment slump is far from over considering that oil prices remain low.
— Krishen Rangasamy, National Bank of Canada
Rahul Vaidyanath
Rahul Vaidyanath
Journalist
Rahul Vaidyanath is a journalist with The Epoch Times in Ottawa. His areas of expertise include the economy, financial markets, China, and national defence and security. He has worked for the Bank of Canada, Canada Mortgage and Housing Corp., and investment banks in Toronto, New York, and Los Angeles.
twitter
Related Topics