Loading ...Depending on who is speaking, the world is either in a deep recession, or is gradually coming out of one. They say that Europe and the United States were the hardest hit. This wasn’t like the mini-recession we had earlier this decade during the dot-com bust. This recession hit more industries and had a much bigger impact- especially on the financial/banking industries. This is more so in the United States since banking regulations aren’t as tight down there.
The recession is probably much less severe in Canada. Toronto is a good example. Although some stores have closed down since the winter, many malls were still packed, even after the holidays, especially on weekends. Some may question whether people are actually shopping, but a recent report indicated that sales have actually risen in May, including sales of residences. As a matter of fact, according to the Bank of Canada, the recession in Canada is pretty much over, and the Toronto Star article says the Canadian economy will bounce back twice as strongly as the United States.
However, people will likely still question whether the recession is truly over in Canada. While the economy has certainly jumped, will it be pulled back down due to the fragility of economies elsewhere? The Canadian economy is very much resource driven. It will be highly dependant on economic growth of other countries and the global demand of natural resources. Hence, the jury is still out, and only time will tell whether things are truly improving. But even if it is improving, it will take years before the economy will reach the likes of mid-decade.
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