ZCAN - Canada: A Bigger Economic Hit A Greater Capacity To Respond
Since the Canadian economy is more susceptible to global growth and energy shocks, and Canadian households are more leveraged, the impact of the novel coronavirus on the Canadian economy could be larger, and the subsequent recession deeper, than what will be experienced in the U.S.
In fact, the Canadian economy may already be in recession. Last week, Prime Minister Justin Trudeau announced that an unprecedented 2.5% of the labor force had filed for unemployment insurance, and subsequent news reports suggest applications could have already risen to closer to 5% of the labor force.
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