World’s 11th-biggest economy and the United States’ biggest trading partner Canada entered into the first technical recession in six years, apparently due to the falling energy prices and economic troubles in China.
The fact was revealed by Canada’s national statistical agency Statistics Canada.
Technical recession means negative economic growth by a country’s gross domestic product (GDP) for two consecutive quarters.
Canadian economy saw a decline of 0.8 percent in GDP growth during the Quarter 1 (January – March 2015).
The last time Canada saw the technical recession was in 2009, when GDP was pulled back by 8.7 percent in the first quarter and 3.6 percent in the second.
Importance of the Event
The event is very significant due to following facts:
- Canada is the only Group of Seven (G-7) nation in economic retreat
- The figures are the weakest since the 2008 global financial crisis.
- Canada is the world’s 11th-biggest economy and the United States’ biggest trading partner.
