Former Bank of Canada governor Mark Carney says a global recession is likely, making it difficult for Canada to keep away from the same economic downturn.
While testifying earlier than the Senate banking committee on Thursday, Carney stated Canada might fare higher than others due to mitigating components such because the nation’s ties to the U.S. and its robust labour market restoration from the pandemic.
A rising variety of economists at the moment are forecasting Canada will enter a recession because the Bank of Canada and different central banks throughout the globe elevate rates of interest to chill excessive inflation.
In response to a query about what precipitated excessive inflation in Canada, Carney stated it was first set off by global circumstances however has since developed right into a home drawback.
The former governor, who additionally served because the governor of the Bank of England, stated rising commodity costs and provide chain points fuelled inflation throughout the pandemic, however since then, inflation has broadened into extra sectors of the financial system.
Carney stated the present economic state of affairs requires fiscal restraint, although focused helps are applicable.
This report by The Canadian Press was first printed Oct. 20, 2022.