A recession could be on the horizon in 2023. For now, most Canadians are currently feeling the pinch of inflation, with food prices in particular (Getty Images/Kentaroo Tryman)
A recession is often talked about, but not always understood. “You can have a technical recession and barely feel anything,” says David-Alexandre Brassard, chief economist, CPA Canada. “You feel a lot more with high inflation.”
WHAT IS A RECESSION?
A recession is defined as two financial quarters of decline in economic activity.
However, while many are worried about a possible recession, unemployment is not rising, explains Brassard. “Growth is slowing down and could go into recession territory in 2023, but we are also experiencing a record low unemployment rate, which is around 4.9 per cent.”
He notes that the current tight labour market—when job openings are growing faster than the pool of…