By most conventional measures (real gross domestic product, employment or hours worked) the 2008-2009 recession in Canada was less severe than those in 1981-1982 and 1990-1992.However, this outcome does not capture the significant impacts stemming from the global financial crisis. Indeed, both output and employment in the early stages of the downturn contracted at the fastest rate of any post-war recession.Mostly, this reflected the unprecedented decline in global trade flows and the resulting quick and severe drop in corporate incomes and spending.The economy began to stabilize in mid-2009 in response to policy measures in Canada and abroad.As a result, the decline in output in Canada, although significant, was less pronounced than in other major industrialized countries, and the subsequent recovery quicker and more complete, with Canada the only G7 nation where real output, private domestic demand, and employment have returned to pre-recession levels.- Comparing the 2008-2010 recession and recovery with previous cycles
The surplus with the United States -- by far Canada's biggest trading partner -- rose to C$3.0 billion in November from C$1.71 billion in October.
Exports to the United States edged up as the U.S. economy showed signs of recovery, though exporters remain pressured by the strong Canadian dollar.
The United States took about 70 percent of Canada's exports. Around 75 percent of Canada's exports were going south of the border every month as recently as a few months ago.
Exports to countries other than the United States rose 1.1 percent for a fifth consecutive month of gains.
Overall, analysts said that the improvement in the deficit should add to economic growth in the fourth quarter.
"The steady tightening in the trade deficit for both October and November suggests that there is some decent upside that can be attached to the forth quarter gross domestic product," wrote Hall.
Hall added if the areas that weighed on exports correct in December, "there is a compelling growth story for the final quarter of 2010." -Reuters
- The latest round of corporate tax cuts came into effect January 1, 2011 and the Liberals voted in favour of them with Economic Action Plan in 2009.
- The Liberals may think overcrowding and neglect in our Prisons is humane.
- The Liberals may not support our military having the best equipment.
I can only hope the NDP and Bloc show up in support of the coalition leader to vote no confidence.