During the second half of the year, Canada has been into recession with the rising unemployment rates, slowing down of economic growth rate, low oil prices etc. have put pressure to their central government minister Stephen Harper, to cover the defensive report in this upcoming elections in mid-november of this year.
According to Seven Star FX research center, considering the economic statistics, the Canadian economy shrinks more than 0.6 % in 2nd quarter of the year, which may be evacuated to 0.8% in rest 4 months.
The recession now seems to be the second recession of Canada in last seven years. It is one of the most developed nations that seems to be in huge debt after the figures of the 2008 financial crisis.
The data represents the growing fear about the darkening pictures about the global economy which witnessed substantial evidence that emerged during a global economic slowdown in china, which acts as growth engine, supporting several economies.
The prime minister of Canada, Mr. Harper whose opposition criticized him harshly, however, he blamed the overseas global economy turmoil for the Canada economy recession which seems to be emphasized during this year.
He said that we might need to live once again in a depression during the peak of global economic instability. There will be huge fall in prices of energy and some commodity sectors.
But the fact remains that the Canadian economy is shrinking from past many year’s highest number of unemployment figures. Canada remains the fifth largest oil producing economy in the world. The prices were hit much higher than $100 during the previous year as compared to 2015. During the second quarter, the mining, oil and gas sector showed a noticeable downturn as per the research conducted by the economists.
The analysts forecasted that the damage could be limited however the economists have different view they added that the worst is about to begin. Currency strategists observed a sharp increase in GDP growth rate that help them to regain the price momentum. Which might provide them a sharp rebound in the last quarter of this year, which will again notice the bearish trend.
On the global platform, their economy seems to be winning all the debate worldwide. The economy seems to witness unemployment, infrastructure, crumbling tax rate, disparity gap between rich and poor, the Canadian middle class seems to be struggling to match the growing competition. Moreover there is 200 billion dollars of new bad debt, the three economic recession.
The three major states of Canada namely Ottawa, Montreal and Ontario need to have some prime modifications. The Prime Minister added that the other sectors seem to be doing well except oil producing companies. Also major notifying thing is that the Canadians have bought more vehicles like cars, bikes. Insurance, financial services.
It was noted that the new investment is stuck. As certain analysis conducted by our research team, the outlays of various products like machinery and equipment, consumer durable seem to be diminishing.
Due to ongoing global economic downturn, imports and exports fell sharply by 0.4% and 0.5% respectively. The housing market has slumped from everything; new construction, renovation and other activities.
Date: 21th September, 2015
Shawn Markel – Economist
Dhruv Williams – Analyst
Konstantinos Nikolakakis – Jr. Currency Strategist