With inflation reaching astronomical levels, some Canadians may be concerned that rising costs will lead to a decline in economic activity and eventually trigger a recession. Experts, however, say this is unlikely to happen anytime soon.
. However, an important question that remains to be answered is whether rapidly increasing interest rates will cause economic growth to slow down so much that it becomes negative, possibly triggering a recession, Macdonald said. According to Veall, this is unlikely to be the case.
But if inflation begins to drop while economic activity continues to grow, this will likely help calm any nerves that might surround the possibility of being hit by a recession, said Marple. “Odds are that we will not have a recession … within the next 18 months,” Veall said. “But you can’t dismiss the possibility.”For those who may be concerned about weathering a potential recession in the months or years to come, Veall recommends being more cautious with personal finances and carefully considering whether major purchases can be afforded if a person were to lose their job, for example.
“This is one of the dangers of a recession, is that it locks in lower real wages as a result of this inflationary surge,” Macdonald said. “Now's the time to ask for better conditions [and] better wages. Lock those in now, prior to the risk of another recession.”
Canada Latest News, Canada Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Canada to ban making, importing many single-use plastics starting in DecemberThe ban will be on single-use plastics including checkout bags, cutlery, food-service ware made from or containing plastic that is hard to recycle
Read more »
Vaccine mandate for domestic travel within Canada ends todayCanadians no longer have to show proof of COVID-19 vaccination to board domestic flights and trains or outbound flights abroad starting today.
Read more »
Canada bans making, importing 'harmful' single-use plastics as of DecemberCanada will also prohibit the export of plastics in six categories by the end of 2025, making it the first among peer countries to do so
Read more »
Canada to spend $4.9-billion on modernizing NORAD defencesDefence Minister Anita Anand announced the six-year investment Monday at Canadian Forces base Trenton
Read more »
Canada investing $4.9 billion to modernize North American defences | National NewswatchNational Newswatch: Canada's most comprehensive site for political news and views. Make it a daily habit.
Read more »