Though Canada’s economy is not technically in a recession, economists say it “feels like one,” given the current economic circumstances, as high population growth prevented an economic contraction.
Higher interest rates alongside decades-high inflation in 2022-23 ate away at household purchasing power.
Weaker demand spurred a rise in the unemployment rate of a size that historically only happens in recessions.
For six of the past seven quarters, real per-person output has fallen alongside rising unemployment.
Per capita GDP has fallen to 3.1 per cent below 2019 levels.
The economists noted the only thing that prevented negative GDP growth in consecutive quarters – the typical definition of a recession – was a wave of new consumers
Consumer spending accounts for more than half of GDP
Seems like a lot to “back it up with,” as it were.
I mean, they are? They are additional consumers in an economy increasingly being driven by consumer spending, where spending per person is falling. So, adding more people keeps things afloat even though each person is spending less.
The main issue is that high immigration is a bandaid (doesn’t address the issues causing spending to fall in the first place, and new spenders just get sucked into the same crappy economic climate once they get here as everyone else) and it comes with a host of other issues (e.g. increasing scarcity of high-quality, appropriate and affordable housing leading to further reduction in consumer spending).
Didn’t read the article eh? How 'bout this:
Seems like a lot to “back it up with,” as it were.
The last line kind of implies that immigrants had an active part in keeping things afloat.
I mean, they are? They are additional consumers in an economy increasingly being driven by consumer spending, where spending per person is falling. So, adding more people keeps things afloat even though each person is spending less.
The main issue is that high immigration is a bandaid (doesn’t address the issues causing spending to fall in the first place, and new spenders just get sucked into the same crappy economic climate once they get here as everyone else) and it comes with a host of other issues (e.g. increasing scarcity of high-quality, appropriate and affordable housing leading to further reduction in consumer spending).