OTTAWA: Former Bank of Canada Governor Stephen Poloz says that Canada and the United States are moving towards a recession. Poloz noted that the economy is weakening in the wake of tariffs, geopolitical tensions, and economic uncertainty.
“We have two economies, and in fact, we can say they are not in a recession, but are moving in that direction,” Poloz said. He explained that this downturn is visible in the labor market figures. He pointed out that Canada’s unemployment rate rose to 7.1% in August, with 66,000 jobs lost, which is the highest rate since May 2016. Youth unemployment reached 14.5 percent.
He also suggested that the influence of artificial intelligence could be a factor. Poloz added that while the US has not faced the same economic crisis as Canada, similar signs of a slowdown are being seen in its housing and labor markets.
