The recent economic retake of the projected recession recovery for Canada suggests that the country is not improving as fast as expected. It has been said that Canada is much slower than before. However, the Bank of Canada is confident that Canada will not go into a second recession and the economy will pick up once again.
The Central Bank has expressed concern that economic weakness in the United States may be affected jointly with global uncertainty due to Europe’s ongoing debt problems, which would negatively impact both Canada and the global recovery in general. However, some beliefs have been resumed from government schemes imposed to prevent additional European deficits from spiraling out of control.
The unfortunate domino effect of a slow global recovery will particularly affect Canada, as demand for Canadian resources such as exports, softwood, and other goods will decline. The Bank of Canada is expecting the country to be more conservative with a 2.8 percent increase in the third quarter, down 0.7 percent from earlier.
However, the Bank of Canada is certainly the country stable that has been handling its current debt growth in the most recent times. Short-term interest rates saw a quarter-point increase for the second time in two months and this fall is expected to increase by another quarter-point. With the national unemployment rate still sitting at 7.9 percent, it may take a few years for Canada to see that rate below the pre-recession six percent average