Experts use ‘R’ word

Economists now see year-long recession

photos.com

“The boom has turned to bust.” Sherry Cooper

October 17, 2008 5:23 a.m.

Be the first to comment

Print article

Text size

The Canadian economy is likely already in recession and may remain in the doldrums for a year, an increasing number of economists now believe.

Economists at the Bank of Montreal became the latest in a growing group saying they believe the economy has already shrunk or is poised to shrink based on the deepening slump in manufacturing and reduced global demand for Canada’s commodities.

“The boom has turned to bust,” BMO chief economist Sherry Cooper wrote in a note to clients about tumbling commodity prices.

“Canada, too, is headed for recession and our government will awaken to the need for deficit spending. Our recession will be milder than in the U.S. and other countries with housing bubbles, but we should expect challenges through much of 2009.”

In a separate report, the Bank of Nova Scotia also predicted Canada’s economy would contract by 0.2 per cent in 2009.

Also yesterday, a panel of 10 Canadian economists sponsored by the C.D. Howe Institute agreed the situation is grave.

Don't be greedy, share this article:

TSX achieves record yearly financings of $49.7 billion, beats record set in 2007

TORONTO - The Toronto Stock Exchange said Thursday that it has already achieved record levels of financings for the year with a couple of months still to go, indicating improved confidence in the world economy.

Trump in the making?

When Ryan Ross was three years old, he started a chicken-and-egg business in his backyard. Today, the eight-year-old is on his fourth company — and has already earned close to $1 million.

Torstar makes changes at the top

Torstar Corp.’s board of directors have confirmed David Holland as president and chief executive officer.

Retailers launch deep discounts to lure in shoppers in stagnant holiday season

TORONTO - Canadian retailers are getting ready for the holiday season with rock-bottom prices and major promotional campaigns in hopes that shoppers will open their wallets and seize the opportunity to save.

OECD raises growth forecasts for developed economies, recovery to remain fragile

PARIS - The world's rich and developed economies will grow faster next year than earlier expected, but the recovery will remain modest, with the United States and Japan outpacing Europe and other developed economies, including Canada, a Paris-based watchdog said Thursday.