(Toronto) Royal Bank economists warn Canada’s economy could slide into recession as early as the first quarter of next year, but expect unemployment to be ‘less severe’ than in downturns previous ones.
Posted yesterday at 12:28 p.m.
In a new report, economists say this recession will not affect households and businesses in the same way.
Lower-income Canadians are likely to be hit hardest, with declining purchasing power and rising debt-servicing costs.
According to Royal economists, price and interest rate hikes will eat away $3,000 from the average household’s purchasing power.
The manufacturing sector will be among the first to slow down, while those in services, such as accommodation and tourism, could prove more resilient.
The unemployment rate, which currently stands at 5.2%, will approach 7.0%, calculate the economists of the Royal.
Company in this dispatch: (TSX: RY)