Stats Canada confirms country in recession

Statistics Canada released figures June 1 that show Canada is in a recession, the first official acknowledgment of the tough economic times hitting Canada, along with the rest of the world. Economists are saying that the recession will not last long.

The Toronto Star reported today that the figures released by Statistics Canada mean Canada is officially experiencing a financial recession.The news is no surprise for thousands of unemployed Canadians as well as business owners. Currently, Canada's official unemployment rate is pegged at 8 per cent. TD bank is forecasting record-breaking bankruptcies levels for individual people in 2009. Conversely, business bankruptcies in Canada were less in the first quarter of 2009 than prior to the recession. There is mixed opinion among economists as to when the world might start to recover from the recession. Economist Nouriel Roubini, who earned the nickname "Dr. Doom" when he predicted the current global economic crisis years before it hit, speculates the recession will last at least until the end of 2009, possibly into 2010. Other economists think that the recession will be over about as quickly as it began. A recession is defined as "a decline in of Gross Domestic Product (GDP) for two or more consecutive quarters." Statistics Canada reported that Canada's economy contracted at a rate of 5.4 per cent in the first four months of 2009. There was a 3.7 per cent decline in GDP in Canada in the last quarter of 2008. Positive signs that economists say show hope for a short-lived recession include a rebound of the stock markets, which began in March 2009, as well as a seeming bottoming-out of the U.S. recession. An economic recovery does not necessarily translate into better unemployment statistics, however. Statistics Canada will be releasing the latest employment report on Friday, and it is expected that there will continue to an increase in the unemployment rate. The current global crisis has already surpassed previous recessions. The International Monetary Fund said earlier this year that it is the worst world-wide recession since the Great Depression of the 1930s.