Staring down a world recession
Ever for the reason that U.S. unveiled sweeping tariffs hitting almost each single certainly one of its main buying and selling companions, there’s been a flurry of predictions {that a} international recession could possibly be imminent.
Economists say the outlook is fairly grim.
I spoke with Tu Nguyen, an economist with RSM Canada, who stated if the U.S. doesn’t change its stance on tariffs quickly, a world recession shall be declared in six months.
“It is cheap to say that we’re getting into one as we converse,” she stated.
As tariffs drive up the value of products, individuals will cease shopping for and investing, dampening demand and growing layoffs — which we’re already beginning to see in some sectors, in keeping with Andrew DiCapua, principal economist with the Canadian Chamber of Commerce.
In a world recession, some nations fare higher. As an illustration, Canada took much less of a success within the 2008 monetary disaster than some areas. However in 2025, Canada’s financial system is so tied to the U.S. financial system that we’ll go down in the event that they do, economists advised us.
Solely the U.S. backing down throughout the board would cease a world recession — which appears unlikely proper now.
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