Economists say there is no doubt that Canada is experiencing a recession, but the exact criteria determining one is underway can be fraught with confusion.
Broadly speaking, a recession is a period of business contraction where economic activity declines. But what exactly constitutes a decline, and over what time period, is the subject of much debate.Some economists prefer the C.D. Howe Institute's definition of a "pronounced, persistent and pervasive decline in aggregate economic activity" based on both GDP and employment metrics.
However, he said it doesn't require two quarters of negative GDP growth -- a method he never uses -- to arrive at that conclusion. "They said that a recession is basically a period of material decline in economic activity, which typically includes two consecutive negative quarters, but it doesn't have to," he said.
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