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Front Burner

Are we in a 'hidden' recession?

Jul 31, 2024
20:48
Snipd AI
The podcast delves into Canada's uncertain economic landscape, sparked by rapid interest rate hikes. Rising unemployment and escalating debt are pushing many to feel the pinch, despite cooling inflation. Experts dissect whether the country is in a hidden recession, exploring how vulnerable populations are affected. The discussion also tackles the impact of increasing mortgage rates on homeowners and the tight rental market, highlighting the financial management struggles of Canadians while navigating these economic changes.
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Podcast summary created with Snipd AI

Quick takeaways

  • Rising unemployment rates and high household debt reflect a precarious economic landscape for Canadians, despite not officially labeling it a recession.
  • The Bank of Canada's challenge lies in balancing inflation control while fostering economic growth amidst concerns of potential deflation.

Deep dives

Current Economic Landscape

The economic situation in Canada has sparked concerns reminiscent of recession, despite formal indicators suggesting otherwise. Unemployment has risen to 6.4%, the highest in nearly seven years, signaling distress in the labor market, particularly affecting new entrants such as young people and immigrants. This increase in unemployment, even if not at recessionary levels, reflects a shifting landscape where job security feels precarious for many. As households reduce spending on non-essential items, the potential for economic weakness to cascade further remains a pressing concern.

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