Is Canada in recession?

A Bank of America economist is saying Canada’s economy is falling into recession, reports the Financial Post.

Read: Canadians will overspend this summer

“Emanuella Enenajor and her team…say that Canada’s economy will shrink by 0.6 per cent in the second quarter, following a 0.6 per cent contraction in the first. The definition of a recession is two consecutive quarters of contraction,” explains the report.

Enenajor also expects the loonie to tank, reaching 70 cents U.S. by year-end.

Read more here.

CIBC economist Benjamin Tal says in a weekly research bulletin that “we need a combination of 0.2% and 0.3% monthly advances for May and June in order to reach the safety of zero growth for the quarter.”

He adds: “We had a forest fire in Alberta in May that probably shaved, at minimum, one tick from that month’s growth. So a technical recession is a real possibility.”

Also read:

Currency is key to future of economy

Exporters confident about global opportunities

Staff

The staff of Advisor.ca have been covering news for financial advisors since 1998.