Bank of Canada drops growth forcast numbers for 2012
Posted October 26, 2011 7:33 pm.
This article is more than 5 years old.
OTTAWA – A bleak outlook from the Bank of Canada has some saying Canada is on the verge of another recession.
On Wednesday, the central bank released it’s monetary policy report, which predicts the economy will expand by a mere 0.9 per cent in the final three months of the year.
It also dropped its forecast for 2012 saying growth will sit at 1.9 per cent before things pick up in 2013.
The debt crisis in Europe remains the biggest threat to the Canadian economy.
Bank governor Mark Carney is confident the problem will be contained and the country avoid another recession.
“We do see growth in Canada, We do see the output gap gradually being absorbed over time,” said Carney.
However, Ian Lee with the Sprott School of Business told 680News he believes the numbers tell a different story.
“We’re so near to tipping over into negative territory called a recession, it’s not funny,” he said.
Lee added that the slightest jolt could throw all these forecasts out the window and the government along with the bank are being too optimistic.
