Former Governor of the Bank of Canada says Canada is going through a recession

 

 

Former Bank of Canada Governor Stephen Poloz says Canada is in recession. Polos made this statement during a webinar. He said that the country is going through a recession, although it cannot be said that it is technically in recession.

A country can technically be called a recession if it experiences two consecutive quarters of negative growth. Canada doesn't have that. This is due to increased consumption due to new immigrants arriving in the country. Last Friday, Statistics Canada reported that gross domestic product (GDP) fell 0.4% for the sixth consecutive quarter. Canadians are spending less as the cost of living has increased by 30% in recent years due to inflation. He added that faster-than-forecast inflation is a sign of recession. Canada's consumer debt rose to a record last quarter, according to the latest report from Equifax. Consumer debt reached nearly $2.5 trillion. A recent report by Oxford Economics suggests that the housing crisis has pushed Canada's economy into recession.