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Canada's Economy Shrinks 0.2% Amid Recession Fears

2/1/2025

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Summary

Story summary

Canada's economy faced a setback in November, shrinking by 0.2%—the steepest drop since December 2023—driven by declines in mining and transportation. While a slight recovery is expected in December, experts caution that looming U.S. tariffs could threaten growth and push the nation toward recession. The Bank of Canada is on high alert.

History

Historical Context

Canada's November economic contraction mirrors the 2008 financial crisis when global markets faltered. Like then, external pressures—such as U.S. tariffs—threaten recovery. Historical patterns show that trade disputes often exacerbate economic downturns, leading nations toward recession, highlighting the fragility of interconnected economies.

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Story summary

Canada's economy faced a setback in November, shrinking by 0.2%—the steepest drop since December 2023—driven by declines in mining and transportation. While a slight recovery is expected in December, experts caution that looming U.S. tariffs could threaten growth and push the nation toward recession. The Bank of Canada is on high alert.

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