Last Edited October 24, The global financial crisis that began in dragged much of the world economy into recession, and Canada was not spared. Although the effects on Canada were milder than on the United States and in Europe, the Canadian recession of —09 was still severe enough to generate sharp declines in output and employment and to require significant responses by Canadian policy-makers. Origins While its underlying causes are varied and still subject for debate, it is widely acknowledged that the global financial crisis was triggered by the surge and collapse of United States housing prices during the s. Lower interest rates made it easier for households to carry larger amounts of mortgage debt, and so the demand for US housing increased.
Pedestrians walk past a stock ticker in the financial district in Toronto on Oct. A half decade of healing the economic wounds have shown mixed results; the patient is on its feet, but in places, scars remain.
Some aspects of the economy recovered more quickly than seemed possible in those tumultuous autumn days of — retail spending, for example, took only a short dive before bouncing back as low borrowing costs gave consumers the confidence to spend.
Story continues below advertisement Retail sales The drop in retail sales was remarkably short-lived, and firm consumer spending is one of the reasons Canada was spared a deeper recession.
Most economists see slower growth in the coming year, as consumers focus on whittling down debt loads. The jobless rate was running at 6. The rate rose as high as 8.
It has since subsided, with the current rate of 7. Five years ago, 1. Job creation Employment fell sharply in the downturn, as companies quickly cut staff to cope with weaker demand.
Byhowever, employment levels had largely recovered, unlike other industrial countries, and job growth has been fairly steady in the past three years. Canada has addedjobs in the past year, with gains in the private sector and among the self-employed. Manufacturing Story continues below advertisement Story continues below advertisement Factory sales remain below their pre-recession peaks in both current- and constant-dollar terms, amid choppy global demand and a strong currency.
They have shown some strength lately, rising in two of the past three months.
Still, manufacturing as a share of total employment in Canada has fallen, to 9. Inflation ran into negative territory in and stayed below 2. It picked up a little the following year, but has stayed below the 2-per-cent mark since April of last year.
Exports Exports have also not returned to pre-recession peaks, amid a rockier global economic environment. The Bank of Canada has been counting on exports and business investment to propel the economy this year, as domestic demand slows. House prices Story continues below advertisement House prices had soared before the recession, only to buckle in the slowdown.
Activity, too, has ramped up, with August home sales running at above their year average.
Household debt The slowdown did little to alter debt accumulationwhich is running at record highs as Canadians bought ever-pricier homes, took out mortgages and renovated. Household credit market debt relative to disposable income hit a record That ratio was Debt may be climbing, but so too is net worth, fuelled by gains in the real estate sector.
Follow Tavia Grant on Twitter taviagrant.economic events of and How apposite is the epithet of the ‘Great Recession’? What were the historical and global circumstances that led to its seemingly sudden.
The unemployment rate began declining in May and did not recover until several months after the recession ended in June are haunted with the prospect of a double-dip recession.
Five years after the financial crisis, Canada’s recovery remains mixed crisis and a seven-month recession in Canada. A half decade of healing the economic wounds have shown mixed results. The Great Recession was the sharp decline in economic activity during the late s and is considered the largest downturn since the Great Depression.
and the ensuing global recession in The Great Recession had a significant economic and political impact on the United States. Q until Q (6 months) Canada: Q until Q (9 months) Chile: Q until Q (12 months) the prospect of the Federal Reserve beginning to decrease its economic stimulus activities began to enter the projections of.
A month after the official end of the most recent recession, in July , the number of job openings declined to a series low of million. Since then, the number of job.