Economy Dips in Canada in Second Quarter of 2011
By Brian Madigan LL.B.
It had been thought that the Canadian economy which performed so well since the 2008 recession was somewhat invincible.
No, that’s not the case!
The second quarter results show that gross domestic product shrank 0.1 per cent. That is an annualized decline of .04 per cent. This has been just reported by Statistics Canada.
There are a variety of reasons, including a slower recovery in the United States and economic problems in Europe.
If our trading partners aren’t buying, then we are not selling, manufacturing or exporting.
In Canada, we are just part of the economic puzzle. We need customers! So, we need our trading partners to do well.
When our trading partners fall into economic difficulty, it is only a matter of time.
If there is a third quarter decline, then most economists will conclude that we are officially into a recession.
The good news is that there is reason for optimism in the US economy.
At the moment, the actual numbers are modest, so it would not be expected that there would be a major impact on the real estate market. But, inevitably the real estate market is driven by affordability.
The true test would be two further down quarters which would coincide with the Spring real estate market.
Brian Madigan LL.B., Broker is an author and commentator on real estate matters, if you are interested in residential or commercial properties in Mississauga, Toronto or the GTA, you may contact him through Royal LePage Innovators Realty, Brokerage 905-796-8888
www.OntarioRealEstateSource.com
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