'Soft landing' with poor GDP growth not a good outcome: Frances Donald

There is too much focus being placed on the technical definition of a recession, according to a Manulife economist who argues that even a “soft landing” will have consequences for most people.

Frances Donald, global chief economist and strategist at Manulife Investment Management, told BNN Bloomberg on Tuesday that Canada and the U.S. could experience a soft landing where two-quarters of negative gross domestic product (GDP) growth does not occur.

In that scenario, she argued that most people will still face tough economic conditions, even if a technical “recession” has been avoided.

“In that type of environment, we don't get rate cuts, maybe we get fewer rate cuts. And yet growth is still not strong enough to support increases in jobs, better wages, and better economic outcomes for everyone,” Donald said in a television interview.