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Governor of the Bank of Canada says Recession is Over

by Karl Gotthardt - albertacowpoke | July 23, 2009 at 08:39 am

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A quarterly Monetary Policy Report released by the Bank of Canada on Thursday, proclaims that he recession is over.

"We're on track for the recovery both in Canada and globally" Mark Carney, Governor of the Bank of Canada said.

After declining since the last quarter in 2008, the Canadian economy will grow by 1.3% in the current quarter. The return to growth after three quarters, of decline signals the end of the recession.

Growth will accelerate through the remainder of 2009 but will slow to less than 3% in 2010 and 2011. Unemployment will continue to rise, according to the report.

The Bank attributes the growth in the housing market and consumer spending to the growth. It also attributes the stimulus for the increase in growth.

The recession is over, the Bank of Canada said in its quarterly Monetary Policy Report released Thursday.

After shrinking since the last quarter of 2008, the Canadian economy will grow by an annualized rate of 1.3 per cent in the current quarter, the bank said.

"We are on track for the recovery both in Canada and globally," Bank of Canada governor Mark Carney told reporters.

However, unemployment will continue to rise, he said.

The return to growth after three quarters of decline signals the end of the recession, defined as two consecutive quarters of shrinkage.

Growth will accelerate through late 2009 and by the first half of 2010, the Canadian economy will be booming along with four per cent growth. But that will begin to taper off to less than three per cent by the last half of 2011, the bank said.