C.D. Howe Institute Says ‘Too Early’ to Declare Canada Is in Recession The C.D. Howe Institute believes it is premature to declare that Canada has entered a recession, despite recent data showing two consecutive quarters of economic contraction. Their Business Cycle Council, considered the leading authority, does not define a recession solely by two straight quarters of declining GDP. Instead, they consider a recession to be a ‘pronounced, persistent and pervasive decline in real economic activity.’

• The C.D. Howe Institute states it is too soon to conclude Canada is in a recession.
• Statistics Canada data indicates the economy contracted for two consecutive quarters.
• The institute’s Business Cycle Council, an authority on recessions, does not use the two-quarter GDP decline definition.
• Their definition of a recession is a ‘pronounced, persistent and pervasive decline in real economic activity.’