Jan. 22, 2009, Ottawa — The Bank of Canada says it thinks the recession will be deep and painful but relatively short.
Jan. 22, 2009, Ottawa — The Bank of Canada says it thinks the recession will be deep and painful but relatively short.
The central bank says in a detailed analysis of the world and Canadian economies that massive stimulus spending and extraordinary actions by central bankers are starting to bear fruit.
In a break with many private-sector economists who predict a slow return to normal, the central bank says Canada's bounce-back will be as sharp as the drop has been.
The bank estimates Canada's gross domestic product contracted by 2.3 per cent in the last three months of 2008 and will dive a whopping 4.8 per cent during the current first three months of the year.
But starting in the second half of this year, the economy will begin to rebound, it says.
The Bank of Canada forecasts the economy will be growing by a robust 3.8 per cent next year.
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