| Author |
 Topic  |
|
|
jadedragon
Administrator
Canada
3788 Posts |
 Posted - 07/24/2009 : 01:53:14
|
Kevin Carmichael
Ottawa — From Friday's Globe and Mail
Last updated on Friday, Jul. 24, 2009 12:35AM EDT
The recession is over, but not the pain.
Canada's central bank predicted Thursday that the economy would expand this quarter, suggesting the economic contraction lasted for about nine months, considerably shorter than the previous two recessions in the early 1990s and the early 1980s.
The Bank of Canada's reassessment of the state of the economy is perhaps the clearest signal yet that the worst of the recession is over.
Buoyed by the prospect of better days ahead, investors rushed to buy Canadian stocks, adding new life to an near five-month rally that economists said has played a big role in reversing Canada's fortunes.
The Standard & Poor's/TSX Composite Index rose 243.33 points to 10,675.68, the highest in six weeks. Canada's dollar jumped about 1 per cent to 92.04 U.S. cents, the strongest in almost two months.
Yet Bank of Canada Governor Mark Carney stopped short of celebration, saying it will take more than a year to replace the wealth destroyed by the financial crisis.
A graphic example of the hole out of which Canada's economy has to climb is the “output gap,” which measures the difference between current economic activity and the level of production policy makers reckon the economy can sustain without causing rapid inflation.
The Bank of Canada's conventional measure of output gap was -4.3 per cent in the second quarter, the widest deficit on record dating back to 1985.
“We are on track for the recovery both in Canada and globally,” Mr. Carney said at a news conference. “But it's early days. It's a long road.”
Canadian policy makers attri
|
“The reasonable man adapts himself to the world; the unreasonable one persists in trying to adapt the world to himself. Therefore all progress depends on the unreasonable man.” – George Bernard Shaw.
Why Copper Bullion ~~~ Interview with Silver Bullion Producer Market Harmony
Passive Income blog |
|
|
Nickelless
Administrator
USA
5580 Posts |
|
|
jadedragon
Administrator
Canada
3788 Posts |
Posted - 07/24/2009 : 07:18:06
|
| Yes Nickelless - that is the big question. Where I live in the west, we worry about US demand for oil and lumber. If the US is not buying, we hurt. Of course we are diversifying by selling to China and other places, which helps, but low commodity prices are bad for our regional economy. |
“The reasonable man adapts himself to the world; the unreasonable one persists in trying to adapt the world to himself. Therefore all progress depends on the unreasonable man.” – George Bernard Shaw.
Why Copper Bullion ~~~ Interview with Silver Bullion Producer Market Harmony
Passive Income blog |
 |
|
|
fb101
Administrator
USA
2856 Posts |
Posted - 07/24/2009 : 17:14:17
|
Since the Canadian economy is recovering so fast, I wonder how big was your bailout?
[ahem...] |
 |
|
|
| |
Topic |
|
|
|
Recession is Over ... In Canada
Forum Locked
