Canada is out of a recession.

**MomToTwoBoys** · 07-23-2009, 05:53 PM

http://www.cbc.ca/money/story/2009/0...-recovery.html

The recession is over, the Bank of Canada said in its quarterly Monetary Policy Report released Thursday.

After shrinking since the last quarter of 2008, the Canadian economy will grow by an annualized rate of 1.3 per cent in the current quarter, the bank said.

"We are on track for the recovery both in Canada and globally," Bank of Canada governor Mark Carney told reporters.

However, unemployment will continue to rise, he said.

For many Canadians, "it's not a recovery until they start getting their jobs back. And on that score, we could still be in for a long wait," Avery Shenfeld, CIBC economist, said in a report published Thursday.

"Don't break out the champagne yet," said Patricia Croft, chief economist of RBC Global Asset Management.

The return to growth after three quarters of decline signals the end of the recession, defined as two consecutive quarters of shrinkage.

Growth will accelerate through late 2009 and by the first half of 2010, the Canadian economy will be booming along with four per cent growth. But that will begin to taper off to less than three per cent by the last half of 2011, the bank said.

Carney said consumer spending and housing are pulling the growth, especially in the U.S. But there is a "speed limit" to that kind of growth, and the economy will hit it after the burst in 2010, he warned.

Yay for cautious but positive outlook on the recession!

**Debbie-cat** · 07-23-2009, 06:10 PM

Yay! Maybe my RRSP's will start doing better.

**strezzed** · 07-23-2009, 06:25 PM

I guess it always starts with the media trying to make us believe it. I just hope it's true.
Debbie-cat, my RRSPs and TFSAs have been picking up for the last couple of months so yours should be too.

**Debbie-cat** · 07-23-2009, 06:31 PM

Yes, strezzed they have been slowly, thanks! My son's RESP is what I am most concerned about right now seeing he is going to be starting a 6 year university program next fall!

**MomToTwoBoys** · 07-23-2009, 07:06 PM

It's not the media that's trying to do it. It's the Bank of Canada governor's own words in a press conference that was held today.

I'm concerned because one of the biggest downshifts to a healthier economy is the rising Loonie. If it gets any higher, that'll slow progress. Besides, my VA pension gets slammed when the Loonie goes up and I end up losing money.

**Greebo** · 07-24-2009, 08:30 AM

But..but..but..but the world was supposed to END! Wasn't it?

Thanks for the good news!

**strezzed** · 07-24-2009, 11:10 AM

Originally Posted by MomToTwoBoys

I'm concerned because one of the biggest downshifts to a healthier economy is the rising Loonie. If it gets any higher, that'll slow progress.

I guess this means that HB can finally convince me to do a little cross-border shopping.

**MomToTwoBoys** · 07-24-2009, 12:33 PM

Originally Posted by Greebo

But..but..but..but the world was supposed to END! Wasn't it?

Thanks for the good news!

Anytime! I figured that with all of the negative economy chatter around the boards lately, some good news was in order.

**frugalfranny** · 07-24-2009, 06:34 PM

Cautious but positive.......I can agree with that.

We all need to hear some good news.

**Grayce** · 07-28-2009, 10:04 AM

I did notice on my last RRSP statement that the value went up instead of down for the first time in quite a while.

**Karen1** · 07-28-2009, 10:12 AM

cautious but positive

truly what else do we have?????

I don't think we are in for good times ahead at all.....the bottom could fall out again very quickly. The real effects of the jobless etc. have not truly been felt yet......the ripple effect of all the negative hasn't truly been felt in the economy. It is sure to come and I am cautious but positive??