A recession would be worse in Canada than U.S.: Economist

The North American economy could be pushed into a recession by next year, and the impact would likely be more pronounced in Canada than the U.S., according to one economist.

David Doyle, the head of economics at Macquarie Group, said much of it comes down to Canada’s economic reliance on the housing market.

"When [Canada] has recessions, the lion’s share of the weakness in gross domestic product tends to come from residential investment," he said.

He pointed out 10 per cent of Canada's GDP growth comes from housing activity, while it makes up less than five per cent of GDP in the U.S.