Economy 52,837 Posted July 4, 2015 Share Posted July 4, 2015 http://globalnews.ca/news/2090239/canada-may-be-in-recession-but-it-could-be-short-lived-report-says/ According to many major banks and experts, they look at the data and concluse Canada is entering a technical recession (2 consecutive quarters of economic contraction) After the economy shrank 0.6% in Q1 of 2015, it appears so far in Q2 it has been shrinking as well and economic activity across many sectors is down. If Q2 turned out to shrink as well, Canada will have entered recession However they say there is not concern because this is a result of slowed activity from lower energy prices. Jobs are not being lost and the GDP losses are because of losses in energy exports and spill over effects. It is not believed this actually indicates a new trend of economic tormoil. Link to post Share on other sites More sharing options...
Woolfsmck 2,763 Posted July 4, 2015 Share Posted July 4, 2015 http://globalnews.ca/news/2090239/canada-may-be-in-recession-but-it-could-be-short-lived-report-says/ According to many major banks and experts, they look at the data and concluse Canada is entering a technical recession (2 consecutive quarters of economic contraction) After the economy shrank 0.6% in Q1 of 2015, it appears so far in Q2 it has been shrinking as well and economic activity across many sectors is down. If Q2 turned out to shrink as well, Canada will have entered recession However they say there is not concern because this is a result of slowed activity from lower energy prices. Jobs are not being lost and the GDP losses are because of losses in energy exports and spill over effects. It is not believed this actually indicates a new trend of economic tormoil.Hopefully, manufacturing and the service sector will pick up the slack, lower energy costs should help their bottom line. like a cat in a sil, I observe life, moving and still. My words give a clue,look inside to see whats true Link to post Share on other sites More sharing options...
LePetitGAGABLover 21,234 Posted July 4, 2015 Share Posted July 4, 2015 First Greece, now this. Mmmmmmmmm Better start buying gold Link to post Share on other sites More sharing options...
Teri Hatcher 2,053 Posted July 4, 2015 Share Posted July 4, 2015 What's next, an economic slump? By the time you reach the end of this sentence, it'll be too late to realize I just wasted your time with a pointless sig. Link to post Share on other sites More sharing options...
bionic 50,111 Posted July 4, 2015 Share Posted July 4, 2015 First Greece, now this... The world rn is all Link to post Share on other sites More sharing options...
Economy 52,837 Posted July 4, 2015 Author Share Posted July 4, 2015 Manufacturing is struggling a lot tho too because much of our manufacturing supports the oil sands which has seen a reduction in capital spending In fact the entire contraction is coming from Western Canada which is comodity based Link to post Share on other sites More sharing options...
Miker 5,683 Posted July 4, 2015 Share Posted July 4, 2015 Another hit on the Canadian dollar because of this..... Mars..........or bust! Link to post Share on other sites More sharing options...
Economy 52,837 Posted July 4, 2015 Author Share Posted July 4, 2015 First Greece, now this... The world rn is all not you comparing a slight contraction due to lower oil prices that didnt even cause job losses to Greece Link to post Share on other sites More sharing options...
bionic 50,111 Posted July 4, 2015 Share Posted July 4, 2015 not you comparing a slight contraction due to lower oil prices that didnt even cause job losses to Greece It wasn't a comparison at all though, it was a list Link to post Share on other sites More sharing options...
Economy 52,837 Posted July 4, 2015 Author Share Posted July 4, 2015 It wasn't a comparison at all though, it was a list i was just kidding Link to post Share on other sites More sharing options...
bionic 50,111 Posted July 4, 2015 Share Posted July 4, 2015 i was just kidding or were you..? Link to post Share on other sites More sharing options...
Woolfsmck 2,763 Posted July 4, 2015 Share Posted July 4, 2015 Manufacturing is struggling a lot tho too because much of our manufacturing supports the oil sands which has seen a reduction in capital spending In fact the entire contraction is coming from Western Canada which is comodity basedhopefully western Canada will learn to diversify... Natuepral resources commodities are solid, but fluxuate dramatically. like a cat in a sil, I observe life, moving and still. My words give a clue,look inside to see whats true Link to post Share on other sites More sharing options...
Economy 52,837 Posted July 4, 2015 Author Share Posted July 4, 2015 Another hit on the Canadian dollar because of this.....yeah... And as i always said, the weaker dollar wouldnt help manufacturing and i was right. So far it hasnt been and heres my theory: - A lot of manufacturing was destroyed when global demand crashed during the crisis and our currency simultaneously surged killing many exporters. Not only do we have fewer actories now to take advanatge of weaker currency, but the ones that did survive obviously dont need a weak currency to survive because the more sensitive ones that needed it to florish are already gone - A lot of manufacturing especially for Western Canada has adapted to service booming energy sector rather than exporting things. As such a weaker currency does nothing for them - A weaker currency alone isnt the holy grail of manufacturing. We have major competitiveness issues especially with regards to high electrical costs in places like Ontario and an unproductive workforce in relation to many other places. A weaker currency cant compensate for this so manufacturing will still struggle So in my opinion u less the CAN Dollar drops even lower for longer i see very little noticeable difference in the strength of our non energy exports and strength of our dyig manufacturing sector in general Link to post Share on other sites More sharing options...
Economy 52,837 Posted July 4, 2015 Author Share Posted July 4, 2015 hopefully western Canada will learn to diversify... Natuepral resources commodities are solid, but fluxuate dramatically. yeah... Its hard to diversify when u have so many resources at your finger tips... Oil, Natural Gas, Coal, Potash, Uranium, Copper, Nickel, Zinc all exist in gast amounts there and they get comfortable on it Here in the Eastern half of the Country we dont have as many resources (a few metals but thats it) so we actually had to innovate. I dont think Western Canada knows how to do that exept maybe BC but Alberta and Saskatchewan pretty much have all their eggs in one basket Link to post Share on other sites More sharing options...
Luc 4,776 Posted July 5, 2015 Share Posted July 5, 2015 yeah... Its hard to diversify when u have so many resources at your finger tips... Oil, Natural Gas, Coal, Potash, Uranium, Copper, Nickel, Zinc all exist in gast amounts there and they get comfortable on it Here in the Eastern half of the Country we dont have as many resources (a few metals but thats it) so we actually had to innovate. I dont think Western Canada knows how to do that exept maybe BC but Alberta and Saskatchewan pretty much have all their eggs in one basket It's called the Dutch Disease. You lose competitiveness because of natural resources. Link to post Share on other sites More sharing options...
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