The following graphic is from the
Bank of Canada's April 2009 Monetary Policy Report. It shows the effect of the financial crisis on household wealth in Canada and the US. Canada has held up better because house prices haven't fallen as much as in the US. The hit taken by unemployment and stock market losses are roughly equivalent on both sides of the border:
It is predicting that this quarter's drop in GDP will come in at an annualized rate of -7.3%, the largest quarterly decline on record since 1961. Here is the expected real GDP and the anticipated recovery. I'm a bit of a sceptic about "recovery" because I've now watched economists for a year and a half move this "recovery" out into the "near future"...
1 comment:
Interesting charts, I too think the chart showing the recovery so soon is a bit too optimistic. With all the job losses and the unemployment rate being so high, I just don't see it being possible. But I guess we'll have to wait and see. Thanks for the article,
take care, Julie
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