Canada’s economy is flirting with recession and the downturn could worsen now that a period of rapid growth in the United States is expected to end, raising bets on the Bank of Canada shifting to interest rate cuts sooner than previously thought.
The Canadian central bank expects that the economy will avoid a recession, and last month forecast growth of 0.8% for both the third and fourth quarters.
Since then, preliminary data has indicted a shallow economic contraction for a second straight quarter in the third quarter. Analysts say that if U.S. activity slows, then the Canadian economy could shrink in the current quarter as well.
Read More : Canada’s Economic Outlook Darkens as US Growth Wavers