Mild recession could quickly get worse without rate cuts: experts
BNN Bloomberg
The Canadian economy may have entered a technical recession, according to preliminary data from Statistics Canada, but experts say people may not feel the difference just yet – though that could change quickly with interest rates currently elevated.
Andrew Grantham, economist at CIBC Capital Markets, wrote in a note that Canada is “already skirting a recession,” based on preliminary economic data for the third quarter released from StatCan on Tuesday.
The estimated data from Statistics Canada data showed GDP shrank in the third quarter. That would fit the definition of a technical recession, which requires two consecutive quarters of negative growth, as GDP was also negative in the second quarter.
Statistics Canada said the preliminary third quarter estimates will be updated with official data on Nov. 30.
