Canada’s economic activity creeps up, unexpectedly
Al JazeeraNov 26, 2022
Report: Canada's Economy Slipped Into Q3 Recession
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Image copyright: Gary Hershorn/Getty Images Corbis News via Getty Images
The Facts
According to data released on Tuesday, the Canadian economy halted in August and most likely entered a minor recession in the third quarter. It suggests that the Bank of Canada's ten interest rate hikes since last year are hurting the nation's Gross Domestic Product (GDP).
The report states that the Canadian economy fell into a technical recession after two consecutive quarters of negative growth, likely due to higher interest rates, inflation, as well as severe forest fires and drought.
The Spin
Establishment-critical narrative
This Canadian recession has been different from others in the past in that certain industries have continued to try to hire while others have been forced to lay off staff. This is in contrast to typical recessions, which are usually followed by increased unemployment and layoffs as business circumstances worsen. It's anticipated that high interest rates will keep stifling economic growth, and things will get worse for the Canadian people in the near future.
Pro-establishment narrative
The Bank of Canada has finished raising interest rates, which are already at record-high levels and have crippled consumers while skyrocketing inflation has reduced their purchasing power. Though changes in interest rates will still take time to reflect in the market — perhaps even as long as a year and a half — Canada's resilient economy will undoubtedly bounce back.
