The Royal Bank of Canada figures that, between the Covid-19 pandemic and the engineered collapse in world oil prices, recession is in our near future.
The bank is predicting Canada's economy will grow at an annualized pace of 0.8 per cent in the first quarter, but then contract in the second and third quarters of the year.
RBC is forecasting an annualized decline of 2.5 per cent in the second quarter and 0.8 per cent in the third quarter.
Its forecast is based on an assumption that the impact of the virus will run its course by the end of the first half of the year, but an economic recovery will be prevented by persistent low oil prices.
RBC expects the economy will pick up in the fourth quarter.
Recession has been in the making for some time.
ReplyDeleteIt has been suggested that covis 19 is just a catalyst for all the recessionary signals such as overpriced stocks and shares,ultra low interest rates and continued stimulus to the money industries.
I suppose we just mortgaged the future to the tipping point of no return.
TB
With the collapse of world oil prices coupled with this pandemic, a recession seems almost inevitable. This could afford an opportunity for transitional change if only we had the courage and vision but I fear we would prefer complacency.
ReplyDeleteIt does not look like Covis is going away within the next twelve months.
ReplyDeleteMy guess is that the time will ,maily, be spent upon supporting the financial sector;gain.
As credit dries up to the general public then so will bankruptcies particularly within the overpriced real estate business.
Been there, done that , got the t shirt , which now has holes in it!
TB