According to Marketwatch, Canada has entered what many consider to be a recession as the country deals with the consequences of a dive in oil and other commodity prices.
Source: Canada arguably in recession after 2nd straight GDP decline – MarketWatch
Elsewhere in the article, it seems that the Canadian economy is being buoyed up by strong demand from the automotive sector (with debt financing schemes).
But Canada is similar to Australia, with a speculative property sector, with too many people over-extended in debt. Already in Sydney, there is news banks are severely rationing mortgages based upon post-codes.
Once Canada’s consumers understand the seriousness of the recession and the risks to jobs, expect consumer demand to react negatively and for the Canadian economy to enter a deepened and prolonged recession. If the property bubble bursts, it could get ugly.
For Canada, short-term, there are two hopes. Firstly, there could be s rise in commodity prices which seems unlikely. Secondly, the Canadian government could stimulate demand with economic policies – we’ll have to wait and see.
Smart Canadians should act now, ahead of the crowd.
Thoughts?