Good News Friday
Don’t Blame Canada
Canada did many things right before the run-up to the credit crisis and during the crisis itself, and now the Canadian economy is recovering more quickly than the U.S. and Europe. First quarter GDP grew at an annualized rate of 6.1 percent, the sharpest increase in more than 10 years and the fastest growth among G-7 countries. Total employment in Canada fell by 2.7 percent versus a peak-to-trough decline of 6.1 percent in the U.S. Since bottoming in August 2009, Canadian employers have added 115,000 net new jobs, recouping 28 percent of the 407,000 jobs lost in the downturn. More conservative financial institutions and a stable housing market helped cushion Canada’s economy from the crisis while global demand for commodities has given the recovery a leg up.
Back in the U.S., The Wall Street Journal ran a must-read editorial yesterday on why fears of a double-dip recession are overstated.
Robert Bach
SVP, Chief Economist
Grubb & Ellis