Canadian Prime Minister Stephen Harper has officially become the first leader in the Great White North to preside over two recessions.
The second quarter declined by 0.1 percent, though the economy did expand in the month of June by 0.5 percent. The economy further shrank in the first quarter. Therefore, Canada meets the legal definition of a recession.
On an annualized basis, the Canadian economy fell by 0.5 percent in the April-to-June period, after shrinking at an 0.8 percent annual pace in the first quarter of 2015.
Canada’s economy has taken a severe beating because of falling oil prices. The oil-rich country has been trying to ride out the storm of $30, $40 and $50 per barrel prices. Other resources, like precious metals, have also been slumping and contributing to the downfall of the Canadian economy. Meanwhile, the public sector has continued to grow under this current government.
Moreover, the prime minister will continue his record of budget deficits and rising national debt as the budget will not be balanced this year.
This doesn’t bode well for Harper’s Conservatives. Polls suggest that Thomas Mulcair and his New Democratic Party is on the cusp of forming a majority government, while the Tories and Justin Trudeau’s Liberals are fighting for the Official Opposition tag.
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