The brain trust at the Bank of Canada has gazed out its window, taken a look at the pedestrian traffic on Sparks Street and declared the recession over.
Maybe they hold have come to the Maritimes and seen the idle mills in Edmunston and Grand Falls, checked out the empty parking lots in St. John and Charlottetown, and looked at the local papers down there. Or they could have gone into Northern Ontario, where most of the mills are shut and $20,000 houses are not uncommon. They migh have gone down through southwestern Ontario and talked to auto worker and merchants in Oshawa, Cambridge, London and Windsor.
The only place the economy seems to be growing is Ottawa, where there are more construction cranes than ever.
Bank declares recession over
Jul 23, 2009 01:17 PM
Toronto Star BUSINESS REPORTER
The end of the recession is nigh, according to the Bank of Canada.
Canada's economy could mark the end of the recession this quarter amid improved financial conditions, firmer commodity prices and recovering consumer confidence, says the central bank's latest monetary policy report released today.
Still, Governor Mark Carney cautioned the economic recovery remains "nascent" and the high-flying Canadian dollar is "significantly moderating" the pace of the rebound. Worse still for consumers, a return to economic growth during the July-to-September quarter will not halt painful layoffs in the job market.
"Unfortunately, the labour market is the slowest to adjust," Carney told journalists in Ottawa following the release of the report. "And so we can expect continued adjustments and probable further rises in unemployment for a period, even though the economy has started to grow."
The central bank is forecasting economic growth of 1.3 per cent on an annualized basis in the third quarter, which is an upward revision of its earlier projection of a 1 per cent contraction for the three-month period