Invest in Canada

Ontario, Quebec to be hit hardest by recession

by investor on 22/12/08 at 9:56 am

Canada, like the rest of the world, faces strong economic headwinds in the coming year, the country’s largest business group says in a forecast released today. But it is uncertain just how bad those headwinds will be, the Canadian Chamber of Commerce added.

“As the dramatic changes to the global economy in the latter part of 2008 demonstrate, the severity and duration of the recession are very difficult to predict,” it said. However, it agrees with most analysts that the domestic economy, which managed to skirt recession through the first three-quarters of the year, “most certainly tipped into a recession in the final quarter of 2008 that will extend into the first half of 2009.”

It projects that the Canadian economy will contract by 0.6% next year from this year, following only marginal 0.7% growth this year.

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