The Current State of Canada’s Economy: Already in Recession

by | Jul 1, 2023 | Recession News | 40 comments

The Current State of Canada’s Economy: Already in Recession




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.

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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.

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40 Comments

  1. Jediknight 129

    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

  2. Laurie

    So really what’s new?

  3. Andrew Dobbin

    we've been in a recession since early 2022 late 2021.

  4. Newman

    94% of our growth was from immigration. We don't have the homes for people now, but let's keep shipping in more people!

  5. ccityplanner12 :

    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.

  6. ED

    Not if the government changes the meaning of depression lol.

  7. Constant Z

    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

  8. Jakub

    Eventually the immigrants are gonna help the economy get back up though

  9. G F

    buy the dip

  10. killumination87

    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.

  11. Go gameing

    A solution that the Canadian government with actually mind would be have immigrants and the unemployed people build housing the public works projects

  12. Heather Jones

    we are on the brink of a depression thanks to the federal government!

  13. 2 Hats

    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.

  14. Thomas Shelby

    Its a depression masked by printed money. We just havnt realized it yet.

  15. Dissent

    One more reason that any sane country will SEVERELY limit immigration.

  16. M L

    Thanks

  17. Kanesclips

    Cause EXTREMELY CORRUPT TRUDEAU…. Using our tax money For His constant private planes all over the world and his EXTREMELY expensive family vacations.

  18. Hurricane Fury

    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.

  19. PYM

    If Justin Trudeau is so unpopular, then how is he being elected every time?
    What's going on in Canada?

  20. Joyce Aldrich

    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…

  21. Vihang030

    Thanks to refugees !! Free food, free shelter, no tax payments, no contribution to economy!!

  22. MadMax

    Trudeau bringing in New voters to secure his position…
    It's so fkng obvious, it's criminal…

  23. sj appiyah

    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.

  24. OmerTheGreatOne

    recession is a good thing, specially when people are still hired and making money.

  25. Bob Ross

    All by design. The great reset by the WEF

  26. Norwalk

    We should've closed the borders a very long time ago

  27. Gus Barrera

    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.

  28. Black Knight88

    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.

  29. davidsonnow

    Wrong. DEPRESSION

  30. iheart oofs

    perfect example of why mass immigration is terrible

  31. Paper Maker's A deluded broad

    Wouldn't this be any politician? I understand that Canada is not well in that area, but a lot of countries are politically horrible

  32. Rustynail D

    We are screwed. isn’t that what you are saying?

  33. utpharmboy2006

    considering canada 30 million pop 1 million is a lot…about 3%

  34. boyce1204

    Democrats and liberals cause recessions, look at history.

  35. TheJayDTV

    One million a year. Jesus. We need stop immigration for a few years and work on deporting some of the illegals we have.

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