<\/p>\n\n\t\t\t\tCould Canada avoid a recession?\t\t\t<\/h2>\n<\/p><\/div>\n
Economists generally define a recession as two consecutive quarters of an economy contracting.<\/p>\n
The RBC report said Canada could avoid a full-blown recession if the tariffs are in place for no more than a few weeks.<\/p>\n
\u201cTariffs removed within a matter of weeks are likely to create a temporary stall for Canada. However, if they extend over a matter of months (e.g. 3-6 months), Canada\u2019s recessionary risks increase rapidly,\u201d the report said.<\/p>\n
Nguyen said a weakening loonie could mean there\u2019s a slight silver lining for Canada.<\/p>\n
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\u201cCurrency depreciation could soften the blow to Canadian exports,\u201d she said.<\/p>\n
Nguyen added, \u201cManufacturing had a strong hiring month in January, which signals that despite trade policy uncertainty, current demand for goods such as autos and appliances remains robust.\u201d<\/p>\n
However, Johnson cautioned observers not to put the cart before the horse.<\/p>\n
Tariffs may yet be avoided, he said, adding:\u00a0\u201cIt\u2019ll be important to see if this is still very much focused on extracting some sort of additional deal.\u201d<\/p>\n<\/p><\/div>\n
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