November 4, 2022
1 min read

Canada braces for mild recession?

The Department of Finance has developed a “downside scenario” that considers the impact of more persistent inflationary pressures …reports Asian Lite News

The Canadian government has released its 2022 Fall Economic Statement, warning that the country is likely to enter a mild recession in the first quarter of 2023.

The Department of Finance has developed a “downside scenario” that considers the impact of more persistent inflationary pressures and further tightening in monetary policy, leading to a “hard landing” in the economy, Xinhua news agency reported, citing the statement.

In the downside scenario, CPI inflation stays above 3 per cent until the first quarter of 2024, about six months longer than in the September 2022 survey, before reaching 2 per cent by the end of 2024.

In response, short-term interest rates reach 4.5 per cent in the first half of 2023 and are up by 0.7 percentage points over the entire forecast horizon. As a result, Canada enters a mild recession in the first quarter of 2023. For 2023 as a whole, real GDP declines by 0.9 per cent.

New Delhi miffed as Trudeau govt fails to rein in anti-India activities.(photo:IN)

“This is a challenging time for millions of Canadians. It’s important that I’m honest with Canadians about the challenges that lie ahead,” Deputy Prime Minister and Minister of Finance Chrystia Freeland said in the parliament on Thursday. “Interest rates are rising as the central bank steps in to tackle inflation. That means our economy is slowing down.”

The Department of Finance surveyed a group of private sector economists in early September 2022. The average of private sector forecasts has been used as the basis for economic and fiscal planning since 1994. Private sector economists projected real GDP growth at just above zero for the next several quarters.

Since the private sector survey was conducted in early September, global economic and financial conditions have continued to deteriorate, and the balance of risks to the growth outlook are tilted to the downside, with growth more likely to come in below the survey, the statement said.

ALSO READ: Canada to welcome record 500,000 new immigrants

Previous Story

Assassination bid: Imran’s PTI to hold countrywide protests

Next Story

Lanka President thanks Indian community for efforts during crisis

Latest from -Top News

Call to Greylist Pakistan Over Terror Links

Freddy Svane, the former Danish Ambassador to India, said that it is high time for the world to acknowledge that Pakistan remains the epicentre of terrorism in the region….reports Asian Lite News

Colombia backs India on terror

The change in tone from Colombia is seen as diplomatically significant, especially given its forthcoming role as a non-permanent member of the United Nations Security Council (UNSC). In a diplomatic correction welcomed

Yunus under fire for poll claims

The backlash was sparked by Yunus’ comments during a visit to Japan earlier this week, where he reportedly said that “no one except one party wants elections in December.” Bangladesh’s fragile political
Go toTop

Don't Miss

Indian family found frozen to death near Canada border identified

Canadian authorities found the bodies of four people, who froze

Pro Khalistan group WSO fuels anti-India campaigns in Canada

The Organization’s primary agenda is raking issues against India…..reports Asian