{"id":10665,"date":"2015-08-03T07:52:20","date_gmt":"2015-08-03T12:52:20","guid":{"rendered":"http:\/\/olduvai.ca\/?p=10665"},"modified":"2015-08-03T07:52:20","modified_gmt":"2015-08-03T12:52:20","slug":"recession-risk-mounting-for-canada","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=10665","title":{"rendered":"Recession Risk Mounting For Canada"},"content":{"rendered":"<h3><a href=\"http:\/\/oilprice.com\/Energy\/Energy-General\/Recession-Risk-Mounting-For-Canada.html\" target=\"_blank\">Recession Risk Mounting For Canada<\/a><\/h3>\n<p>The latest economic data from Canada shows that it is inching towards recession, after its economy posted its fifth straight month of contraction.<\/p>\n<p>Statistics Canada revealed on July 31 that the Canadian economy\u00a0<a href=\"http:\/\/www.thestar.com\/business\/economy\/2015\/07\/31\/gdp-report-shows-economy-edging-closer-to-recession.html\">shrank by 0.2 percent<\/a>\u00a0on an annualized basis in May, perhaps pushing the country over the edge into recessionary territory for the first half of 2015. \u201cThere is no sugar-coating this one,\u201d Douglas Porter, BMO chief economist, wrote in a client note. \u201cIt\u2019s a sour result.\u201d<\/p>\n<p>The poor showing surprised economists, who predicted GDP to remain flat, but it the result followed a contraction in the first quarter at an\u00a0<a href=\"http:\/\/oilprice.com\/Energy\/Oil-Prices\/Canadian-Economy-More-Damaged-By-Oil-Prices-Than-Expected.html\">annual rate of 0.6 percent<\/a>. Canada\u2019s economy may or may not have technically dipped into recession this year \u2013 defined as two consecutive quarters of negative GDP growth \u2013 but it is surely facing some serious headwinds.<\/p>\n<p><a href=\"http:\/\/oilprice.com\/Energy\/Energy-General\/This-Week-In-Energy-Low-Oil-Prices-Inflict-Serious-Pain-This-Earnings-Season.html\"><strong>Related:\u00a0This Week In Energy: Low Oil Prices Inflict Serious Pain This Earnings Season<\/strong><\/a><\/p>\n<p>Canada\u2019s central bank slashed interest rates in July to 0.50 percent, the second cut this year, but that may not be enough to goose the economy. With rates already so low, there comes a point when interest rate cuts have\u00a0<a href=\"http:\/\/www.thestar.com\/business\/personal_finance\/2015\/07\/15\/4-reasons-the-bank-of-canadas-interest-rate-cut-wont-help-us-mayers.html\">diminishing returns.<\/a>\u00a0Consumer confidence in Canada is at a\u00a0<a href=\"http:\/\/www.bnn.ca\/News\/2015\/7\/27\/Canadian-consumer-sentiment-falls-to-two-year-low-after-rate-cut.aspx\">two-year low.<\/a><\/p>\n<p>There are other fault lines in the Canadian economy. Fears over a housing bubble in key metro areas such as Toronto and Vancouver are rising. \u201cIn light of its hotter price performance over the past three to five years and greater supply risk, this vulnerability appears to be comparatively high in the Toronto market,\u201d the deputy chief economist of\u00a0<a href=\"http:\/\/www.theglobeandmail.com\/report-on-business\/top-business-stories\/tds-toronto-vancouver-housing-froth-meter-proceed-with-caution\/article25778700\/\">TD Bank wrote<\/a>\u00a0in a new report. A run up in housing prices, along with overbuilding units that haven\u2019t been sold, and a high home price-to-income ratio has TD Bank predicting a \u201cmedium-to-moderate\u201d chance of a \u201cpainful price adjustment.\u201d In other words, the bubble could deflate.<\/p>\n<p>&nbsp;<\/p>\n<p>&#8230;click on the above link to read the rest of the article&#8230;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Recession Risk Mounting For Canada The latest economic data from Canada shows that it is inching towards recession, after its economy posted its fifth straight month of contraction. Statistics Canada revealed on July 31 that the Canadian economy\u00a0shrank by 0.2 percent\u00a0on an annualized basis in May, perhaps pushing the country over the edge into recessionary [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[1082,103,151,2488,353,406,6010,1775,5332,1264,1936,803,1340],"class_list":["post-10665","post","type-post","status-publish","format-standard","hentry","category-economics","tag-alberta","tag-canada","tag-commodities","tag-energy-prices","tag-gdp","tag-housing-bubble","tag-nick-cunningham","tag-oil-price-collapse","tag-oilprice-com","tag-recession","tag-statistics-canada","tag-toronto","tag-vancouver"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/10665","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=10665"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/10665\/revisions"}],"predecessor-version":[{"id":10666,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/10665\/revisions\/10666"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=10665"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=10665"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=10665"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}