A new report by Deloitte suggests that Canada will enter a short technical recession by the end of the year, a scenario that brings both good and bad news. Experts at Deloitte say that a tight labour market and a big savings cushion that many people and businesses have accumulated during the pandemic are going to help soften the blow.
Global’s Anne Gaviola speaks with Brett Chang from The Peak Daily podcast, who says that the future is uncertain. Traditionally, a recession means a combination of economic decline over multiple months as well as a simultaneous increase in an open and expansive labour market with high unemployment — which is not what we’re seeing at the moment.
A combination of a tight labour market with declining markets has not been seen before, meaning Deloitte experts are also navigating unprecedented waters.
With this in mind, will Canada see a recession by the end of the year? Gaviola and Chang explain.
