Recession lingers: OECD

An international economic think-tank is declaring Canada still in recession, an assessment that is at odds with the Bank of Canada and most private sector analysts.

OTTAWA — An international economic think-tank is declaring Canada still in recession, an assessment that is at odds with the Bank of Canada and most private sector analysts.

The Paris-based Organization for Economic Co-operation and Development says Canada’s economy will continue to shrink in the current quarter at an annualized rate of two per cent, in contrast with the Canadian central bank’s contention that the recession has ended.

In July, the Bank of Canada predicted the current quarter — the July, August September months — will see a 1.3 per cent growth.

Since then, many private sector economists have estimated the short-term rebound could even be stronger at above two per cent annualized.

“I don’t know too many people who think that (the OECD forecast),” said Avery Shenfeld, the chief economist with CIBC World Markets.

“It doesn’t sound current with the data,” pointing out that Statistics Canada said last week the Canadian economy began growing, although only a smidgen, as early as June.

The OECD projection is also far more gloomy about Canada in the fourth quarter as well, putting growth at a minuscule 0.4 per cent, compared to the Bank of Canada’s three per cent growth projection.

The think-tank’s new numbers are actually an improvement from its June estimates, but if correct, it will mean Canada will trail the G7 nations in its recovery, at least this quarter.

The organization offered no analysis about Canada in its report posted Thursday.

However, some economists suggested the OECD may be using older data from earlier this summer that is out of date and might affect the think tank’s growth projection’s for the Canadian economy.

Just Posted

Chemical analysis may provide clues to cause of huge Red Deer industrial fire

Fire on April 17 caused $9 million in damage to oil and gas industrial building

New loonie reason to celebrate and educate: central Alberta LGBTQ community

The new LGBTQ2 loonie is a conversation starter and a reason to… Continue reading

C & E Trail property owner wants to use land as RV storage yard

Red Deer city council gives initial approval

Indigenous cultural centre needed in Red Deer

Urban Aboriginal Voices Society hosts annual community gathering

Red Deer youth recognized for his compassion

Blackfalds man dies after vehicle collision

MISSING: Joshua Arthur Sanford

37-year-old Ponoka man last seen on Tuesday morning

Inspired by a galaxy far, far away, these ‘Star Wars’ mementos could be yours forever

CHICAGO —The stuff of “Star Wars” —and there is unfortunately no better… Continue reading

Shoppers Drug Mart launches second online medical pot portal in Alberta

TORONTO — Medical cannabis users in Alberta can now get their therapeutic… Continue reading

Oh, yes! Nurse, Raptors look to finish series with Magic

DENVER — In response to an early call, Toronto coach Nick Nurse… Continue reading

Delay of game calls, goalie interference top worst rules for NHLers: survey

The pace and excitement of 3-on-3 overtime isn’t just a thrill for… Continue reading

Avengers get epic send-off at ‘Endgame’ world premiere

LOS ANGELES — There were more than a few sniffles from the… Continue reading

Writers’ Trust launches program pairing rising writers with established mentors

TORONTO — The Writers’ Trust has launched a program that gives five… Continue reading

Family: A potpourri of Easter egg hunts, music and politics

The election is a thing of the past. Albertans have spoken. They… Continue reading

Most Read