C.D. Howe Council Rejects 2-Quarter Recession Call as Canada’s Jobless Rate Falls to 6.6%
Updated
Updated · CBC Sports · Jun 5
C.D. Howe Council Rejects 2-Quarter Recession Call as Canada’s Jobless Rate Falls to 6.6%
2 articles · Updated · CBC Sports · Jun 5
Summary
Two straight quarters of GDP contraction are not enough for Canada to be labeled in recession, the C.D. Howe Institute’s Business Cycle Council said Friday.
The council said the downturn is not yet pronounced, persistent or pervasive enough, and noted the first-quarter GDP dip was marginal and could still be revised.
To declare a recession, it said, Canada would need at least one significant drop in activity plus weakness in other recent quarters and declines across many sectors.
The ruling cuts against Conservative claims of a “full-blown recession” and comes as Prime Minister Mark Carney argues growth will be uneven during a shift away from U.S. reliance.
Statistics Canada also reported unemployment fell to 6.6% in May from 6.9%, with the first significant job gain since November reinforcing the council’s caution.