Latest recession not as severe as previous ones
Posted Jan 13, 2011 1:28 pm.
This article is more than 5 years old.
Statistics Canada reports the most recent economic downturn was not as bad as the previous two.
The various economic numbers indicate the effects of the recession were steep and fast, but the subsequent recovery was quicker and more complete.
CIBC Senior economist Avery Shenfeld believes there are a couple of reasons as to why the recession of 2008 – 2009 was not as painful.
Shenfeld says to stop the spiral interest rates were slashed and Federal and Provincial governments spent billions of dollars to stimulate economic activity.
He says those two things did not happen in the previous recessions in the early 80’s and 90’s.
Fred Ketchen with Scotia Capital says word that the recession was less severe is small comfort to anybody who did lose their jobs and are still struggling to make ends meet.
Statistics Canada reports our country is the only G7 nation where real output , private domestic demand and employment have returned to pre-recession levels.
