Is Canada Headed For Another Recession? Eight Troubling Signs
A string of dire economic news since the beginning of 2015 has many observers worried about whether Canada could be on the brink of another downturn, but economists say it’s too soon to mention the “R-word.”
One month in, layoffs seem to be the dominant theme — the second-largest in Canadian history at Target and many more in the battered oil sector.
The Bank of Canada shocked Canadians with a surprise interest rate cut and the loonie has fallen to levels not seen since the Great Recession of 2008-2009.
The news pouring in about the end of last year has been a bit worrisome. The economy shrank in November — and that was before oil prices reached their current lows, something the central bank has determined is decidedly bad for the Canadian economy. Job creation estimates were also revised last month, and job growth for 2014 was slashed by a third, suggesting further underlying weakness in the labour market.
Canada’s situation doesn’t appear on the path to improving any time soon, with oil prices expected to remain low for the remainder of the year. In its rate decision, the Bank of Canada said the cut was insurance — but insurance against what?
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