Canada’s Sweet and Sour Economy

It will not be a sad farewell to 2015 – at least from an economic perspective. Canada’s economy began the year on a sour note, slipping into a technical recession in the first half of the year. While economists expect an improvement in the second half, there remains a significant amount of slack in the economy. Real GDP is now forecast to grow by 1.6% this year, which remains below potential. As a result, Canadians have had to cope with a lot of uncertainty. One way to look at the uncertainty is the Conference Board of Canada’s consumer confidence index. As the bad economic news made newspaper headlines, consumer confidence zigzagged up and down as Canadians tried to make sense of the impact on their jobs and finances. By October, confidence had fallen to 95.3 from 107 points in January 2015. Even six years after the 2009 recession, consumer confidence…