With election fever in the air, it is unlikely that a sitting government, particularly one with the Machiavellian instincts of this one, would be forthcoming about the state of the economy. So it appears that the task of delivering bad news falls to Bank of Canada Governor Mark Carney.
Bloomberg is reporting today that in a speech at the Woodrow Wilson Centre, Carney noted that Canada's economy is currently shrinking at a 5.4% rate, and that the total decline expected this year is 3%, the largest single year decline since 1933. Carney's sentiments, the report notes, were echoed by BMO economist Doug Porter.
While the housing market remains buoyant on historically low mortgage rates, unemployment continues to climb, and is now at 8.4%, with Ontario's manufacturing heartland continuing its rapid decline. And as mortgage rates continue to rise in tandem with unemployment, it would seem likely that the real estate decline will resume as will foreclosure rates.
So Minister Flaherty`s claims that we are likely to sail through this downturn relatively unscathed ring increasingly hollow. Tellingly, there was no comment on Carney`s remarks on either the Liberal or NDP websites.
No comments:
Post a Comment