If you listen to your average Canadian politician, you’re probably going to be hearing a lot about how Canada is on track for an economic “soft landing” and that we’re going to avoid the bank failures and other financial calamities currently striking the United States. But Canada is definitely heading into a recession. In fact, we’re already there.
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Why Canada is Already in Recession
As the global economy faces uncertain times due to the ongoing COVID-19 pandemic, several countries have experienced a substantial decline in economic growth. Canada, known for its robust economy, is not immune to this downturn. In fact, many economists argue that Canada is already in a recession, and here’s why.
Firstly, the collapse of oil prices has severely impacted Canada’s economy, particularly in resource-dependent provinces such as Alberta. The demand for oil decreased drastically due to travel restrictions and a significant decline in economic activity worldwide. As a result, the Canadian energy sector has faced massive layoffs and reduced production, negatively affecting the nation’s gross domestic product (GDP).
Secondly, the shutdown of large portions of the economy has had a significant impact on various sectors. Manufacturing, retail, tourism, and hospitality industries have faced immense challenges due to social distancing measures and restrictions imposed to contain the spread of the virus. Business closures and layoffs have resulted in a sharp decrease in consumer spending, further hindering economic growth.
Furthermore, the decline in domestic and international trade has also contributed to Canada’s recessionary situation. With many countries implementing lockdowns and trade restrictions, the flow of goods and services has been disrupted globally. This disruption has particularly affected Canadian exporters, leading to reduced demand and a decline in export revenues.
Moreover, Canada’s high dependency on consumer debt has further exacerbated the recessionary conditions. The pandemic-induced economic crisis has left many Canadians unemployed or on reduced wages, making it challenging for them to meet their financial obligations. This has resulted in increased defaults and reduced consumer spending, further slowing down economic recovery.
Additionally, the Canadian housing market, which has been a significant driver of economic growth in recent years, is showing signs of vulnerability. The pandemic has hampered both supply and demand in the housing sector. Construction projects have been delayed or canceled, and potential buyers face increased uncertainty, leading to reduced sales and a decline in house prices. A weakened housing market has cascading effects on jobs, consumer spending, and overall economic activity.
The Canadian government’s response to the crisis has been significant, with the implementation of various fiscal measures to support businesses and individuals. However, despite these efforts, the road to recovery remains bumpy, and it will likely take time for the economy to regain its pre-pandemic strength.
In conclusion, Canada’s current economic situation suggests that the country is already in a recession. The collapse of oil prices, business closures, reduced trade flows, high consumer debt levels, and a weakened housing market have all contributed to this recessionary state. As the nation continues to battle the effects of the pandemic, policymakers and economists must work together to mitigate the impact and foster a sustainable and robust recovery.
The bank failure in the US… At least one of those banks could cash out eveyy one and the feds forced it to crash. Soo its a bit of a mess
So really what’s new?
we've been in a recession since early 2022 late 2021.
94% of our growth was from immigration. We don't have the homes for people now, but let's keep shipping in more people!
In the UK, the Conservatives have been boasting about avoiding a post-covid recession, but when you look at GDP per capita, we have had 2 consecutive quarters of GDP growth outstripped by population growth.
Not if the government changes the meaning of depression lol.
Canadians… Just vote out your dictator!!!
Another issue is the inflation. Only the nominal GDP (aka how much money you get) stays the same but the purchasing power (aka how much stuff you can buy) is declining. So it is a recession
Eventually the immigrants are gonna help the economy get back up though
buy the dip
You bring in immigrants, who will now work for less than nothing displacing canadian workers and allowing the government to push over the mismanagement of money onto cheap labour.
A solution that the Canadian government with actually mind would be have immigrants and the unemployed people build housing the public works projects
we are on the brink of a depression thanks to the federal government!
And yet, for some reason that bog standard definition of “recession” was thrown out the window when the Democrats were fighting a midterm election. So strange.
Its a depression masked by printed money. We just havnt realized it yet.
One more reason that any sane country will SEVERELY limit immigration.
Don't worry, sloppy Joe will fix everything.
Thanks
Cause EXTREMELY CORRUPT TRUDEAU…. Using our tax money For His constant private planes all over the world and his EXTREMELY expensive family vacations.
this is what happens when a fascist like Trudeau takes over a country
I really hope that our neighbors to the north will be ok.
If Justin Trudeau is so unpopular, then how is he being elected every time?
What's going on in Canada?
Idiot. Bringing in population raises gdp as it increases consumption and government spending.
Feds
If all debt was called in, we could find we're in a Depression. Credit may be buoying us up in a way it didn't in 1929. Maybe I'm wrong, but … could be…
Thanks to refugees !! Free food, free shelter, no tax payments, no contribution to economy!!
Trudeau bringing in New voters to secure his position…
It's so fkng obvious, it's criminal…
Ah yes , Trudeau’s higher spending increasing inflation and then his genius plan to increase immigrant to a million a year when we have a housing crisis and back up healthcare network , genius, absolutely genius.
recession is a good thing, specially when people are still hired and making money.
All by design. The great reset by the WEF
We should've closed the borders a very long time ago
Americans better get ready for many times more financial pain; no thanks to the continuous disastrous policies of the commie Biden Harris administration.
The US has been the world's #1 buyer of consumer products for quite some time, followed by Western Europeans.
Western European economies are dead in the water.
The US economy is contracting at the fastest pace 'ever.'
If the top 2 world product consuming countries economies are dead, who's going to buy the rest of the planets products?
Common sense dictates, Americans are soon to experience ALOT of financial pain, and suffering-massive job losses, like never before experienced, is coming our way, if a miracle doesn't occur, or nothing changes.
Why does everyone think mass public media has been increasingly talking about UBI? Coincidence?
Expect people from countless 3rd world countries, increasingly flooding across US borders, fleeing to the US, looking for safety and refuge, overwhelming US resources and inability to accomodate, eventually, millions of the world's economic refugees.
The big banks are extending mortgages to save defaults. The problem with this is the bank of Canada has to increase interest rates because no one feels economic uncertainty with free bailouts. The housing market needs to crash. Without it crashing, housing prices will still go up and no one will default or sell, which creates a housing shortage on top of it all.
Wrong. DEPRESSION
perfect example of why mass immigration is terrible
Wouldn't this be any politician? I understand that Canada is not well in that area, but a lot of countries are politically horrible
When has Canada not been in a recession? Sh*t economy! Taxation is not the road to prosperity!
We are screwed. isn’t that what you are saying?
considering canada 30 million pop 1 million is a lot…about 3%
Democrats and liberals cause recessions, look at history.
One million a year. Jesus. We need stop immigration for a few years and work on deporting some of the illegals we have.