Jean-François Perrault, senior vice-president and chief economist at Scotiabank joins BNN Bloomberg for a preview of tomorrow’s Bank of Canada’s rate decision. He says while the labour market’s resilience is surprising, the focus remains on inflation and that a slowdown may come sooner rather than later, albeit less aggressive.
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BREAKING: Recession News
LEARN MORE ABOUT: Bank Failures
REVEALED: Best Investment During Inflation
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According to a chief economist, recession may be reasonably imminent in both Canada and the United States. A number of economic indicators suggest that the next recession is on the horizon, and policymakers need to prepare for the worst-case scenario.
One of the key indicators of a recession is a slowdown in economic growth. Both Canada and the United States have experienced a deceleration of growth in recent months. In the first quarter of this year, Canada’s GDP grew by only 0.4% – the lowest rate in nearly four years. Meanwhile, the U.S. economy grew by just 2.1% in the same period, down from a growth rate of 3.1% in the previous quarter.
Another concerning economic trend is the increasing likelihood of a global economic slowdown. The global economy is facing a number of headwinds, including a trade war between the U.S. and China, Brexit uncertainty, and a potential economic crisis in Italy. These factors could have a significant impact on Canada and the U.S., which both rely heavily on international trade.
The chief economist also points to rising debt levels as a potential cause for concern. Both households and governments in Canada and the U.S. have been racking up record levels of debt in recent years. This could make it difficult for individuals and institutions to weather an economic downturn, and could even exacerbate the effects of a recession.
So, what can policymakers do to mitigate the risk of a recession? The chief economist suggests that governments should focus on implementing policies that can boost economic growth and protect vulnerable individuals and industries. This could include investing in infrastructure projects, implementing targeted fiscal policies, and developing emergency preparedness plans.
Ultimately, the chief economist’s warning that a recession may be reasonably imminent should serve as a wake-up call for policymakers in Canada and the U.S. There is still time to take action to minimize the impact of the next recession, but time is running out. Failure to act now could have disastrous consequences for both countries’ economies and the well-being of their citizens.
when they all say theres gonna be a "little pain" you know the deal.
wow these bankers are extremely dumb.
In light of the impending recession and the fact that inflation is still far higher than the Fed's 2% target, several of the most prominent market analysts have been expressing their views on how terrible they believe the next downturn will be and how far stocks may have to fall. I need advice on what investments to make because I'm attempting to create a portfolio for my children that will at least be $850k in value.
Some economists have projected that both the U.S. and parts of Europe could slip into a recession for a portion of 2023. A global recession, defined as a contraction in annual global per capita income, is more rare because China and emerging markets often grow faster than more developed economies. Essentially the world economy is considered to be in recession if economic growth falls behind population growth.
Things are going to get NASTY! Don't listen to these idiots.
USD circulation in Asia became too low . Every nation here ready to use their own currency to do trading. UAE , Saudi ready to give oil using INR , Chinese yen , Russian ruble .. 28 countries came forward not to depend on USD for doing global trade .
Inflation has already been solved just wait for the base effects to play through the Bank of Canada has done enough.
Capitalism isn’t working. First the explanation was supply chain problems due to the pandemic. Then it was excessive spending due to pent up demand. Then it was the war in Ukraine. Now the explanations get weaker and more diverse (OPEC is curtailing supply, housing etc), with the occasional mention of historic business profits. In response to interest rate hikes we’re seeing the banks offering longer term loans, enabling people to continue accumulating debt buying overpriced goods and services. Buy a new car, $0 down, 84 month term, at an outrageous price. Remortgage your home for a longer term to reduce payments and free up money to keep spending. And consumers are doing it. The next steps are financial companies spinning off that debt (remember “asset backed commercial paper”), then people defaulting on those loans, then the house of cards crashing down. Again. And a lot of businesses will have become very rich, and common people’s retirement investments will be lost, and there will be more explanations. That’s not capitalism, that’s a Ponzi scheme with a repeating cycle.
BRING IT ON MOTHER FUCKERS
Biggest lesson of 2022 in the stock market: Nobody knows what is going to happen next, so practice some humility and follow a strategy with a long term edge.
Government Employee…knows O….ur tax payer money at work lol
The same govt & corp "experts" who said "inflation not an issue" now say same about recession
Oh but biden & trudeau supporters say economy "great"
My greatest happiness is the $ 28,000 biweekly profit I get consistently from my investment despite the economic downturn and fluctuations in stock and Crypto market