P.M. BRIEFING : Canada Reported in Recession
The Canadian dollar opened slightly higher on international markets today, hours after Finance Minister Michael Wilson said the country is in an economic recession.
Wilson told a parliamentary finance committee late Monday night he has seen some third-quarter statistics that indicate a further decline in output. “However, we do not expect this to be a severe recession,” he added.
Despite Wilson’s admission, the first time he has used the word recession to describe economic activity, the Canadian dollar opened at 85.23 cents today, up slightly from Monday’s close of 85.07 cents.
Gross domestic product declined in the second quarter of 1990. A decline in the third quarter would meet the technical definition of a recession. “That appears to be what we are in right now,” he said.
He said Canada had 7 1/2 years of very strong growth after the last recession in 1981-82.
The economic slowdown has been compounded by major work stoppages, the crisis in the Middle East and the weakening U.S. economy, Wilson said, adding he hoped to reveal plans for dealing with the recession at a meeting in December of provincial and federal finance ministers.
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