MNI BRIEF: Business Cycle Body Says Canada Isn't In Recession

Canada's economy has not entered a recession according to a business cycle dating group convened by the CD Howe think tank, seen as the main arbiter of such questions.

"The two-quarter drop in GDP (0.28 percent) was of very low amplitude compared with any recession previously declared by the Business Cycle Council," according to a report by the Toronto-based body on Friday. A week ago Statistics Canada reported GDP shrank at a 1% annualized pace in the fourth quarter and a 0.1% rate in the first quarter. But on a quarter-over-quarter basis it shrank at the end of last year and was unchanged from January to March of this year. 

CD Howe experts including several former BOC analysts don't accept the definition of a “technical recession” being two consecutive quarters of falling GDP as the true measure, the report said. "The Council is monitoring developments closely and stands ready to meet to discuss a recession call if GDP and employment continue to show signs of strain across a broad range of sectors."