Canada entered first technical recession in six years

Sep 3, 2015 15:15 IST

Pulled by falling energy prices and economic troubles in China, Canadian economy entered into the first technical recession in six years. This was revealed by Canada’s national statistical agency Statistics Canada on 1 September 2015.

Technical recession means negative economic growth by a country’s gross domestic product (GDP) for two consecutive quarters.

From this viewpoint, as revealed by Canada Statistics, Canadian economy retreated at an annual pace of 0.5 percent during Quarter 2 (April-June 2015) which followed a decline of 0.8 percent in GDP growth during the Quarter 1 (January – March 2015).

The last time the Canadian economy saw the technical recession was in 2009, when GDP was pulled back by 8.7 percent in the first quarter and 3.6 percent in the second.

Further, it is the only Group of Seven (G-7) nation in economic retreat and the figures are the weakest since the 2008 global financial crisis. Canada is the world's 11th-biggest economy and the United States' biggest trading partner.

This news of recession on economic front of the country may carry trouble for Prime Minister Stephen Harper and his Conservative Party ahead of the elections scheduled to be held on 19 October 2015. Harper is campaigning for a fourth term on a record of economic growth.

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