Is it too early to crack open the champagne? -

Is it too early to crack open the champagne?

StatsCan says Canada’s recession is officially over


On Monday, it became official: the recession is over. According to Statistics Canada, the Canadian economy grew at an annualized rate of 0.4 per cent during the third quarter, No, it’s not the whopping two per cent that the Bank of Canada had hoped for. But it was still growth—enough to declare an end to the financial downturn. Diane Petramala, an economist at TD Economics, stresses that Canada had a built-in advantage over other countries when it came to recovering: “Canada didn’t have the credit problems that they had in the U.S and elsewhere. That allowed Canadian businesses and consumers to take advantage of low borrowing rates that other countries couldn’t capitalize on.” Still, Avery Shenfeld, chief economist at CIBC World Markets, warns that “Canadians are spending, but not on what we make at home.” The money being channeled towards imported goods, says Shenfeld, will be “an ongoing area of concern.”

Vancouver Sun

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Is it too early to crack open the champagne?

  1. So does anyone think that Canada came out of recession because of the stimulus spending?

  2. Of course not. The proper question to ask, however, is does anybody think that our governments' willingness to protect industries saved us from following the path of Argentina?

  3. Doubt we'll end up like Argentina. But it's not for lack of trying. It may well be tha the stimulus provided a small boost which got us out of recession earlier. My problem with stimulus is that the bill always, always, ALWAYS comes due sooner or later. A small boost now ends up being a large drag later in terms of debt.

  4. Ask the 900 people that Roger's jettisoned last week or the 700 Bombardier threw under the bus if they are jumping for joy because the recession is "over". What a farce.