6 ways to prepare your finances for a potential recession
CTV
Despite Canada's economic resilience in the face of rising interest rates, it's still important to be prepared in case a recession hits. In a column for CTVNews.ca, personal finance contributor Christopher Liew shares some practical tips and actionable advice to better weather any economic storm.
Despite Canada’s economic resilience in the face of rising interest rates over recent months, it’s still important to be prepared in case a recession arises.
A recession is announced once an economy undergoes two consecutive quarters of negative gross domestic product (GDP). In addition to a decline in GDP, employment and spending levels typically fall as well, putting pressure on small businesses and often resulting in job loss.
Below, I’ll share some practical tips and actionable advice to help you and your family better weather any economic storms that may come.
The last official recession in Canada occurred during the COVID-19 pandemic, between February and April 2020, according to the C. D. Howe Institute. Since then, the economy has remained strong and has yet to enter a recession.
However, as we move into the fourth quarter of 2023, one expert says he fears this resiliency might be a temporary “illusion.”
In an interview with CTV News Channel on Aug. 15, Concordia University economics professor Moshe Lander said Canada is likely "entering a recession, if we're not already inside one.” Lander predicted that by September, Canada will start to see its GDP slow down, part of which would be the result of consistent interest rate hikes.
The jury is still out, though, as economic recessions can be difficult to predict. It’s also possible for Canada to dodge a recession altogether.
