TD chief economist Craig Alexander said the bank expects the
OTTAWA — The Canadian economy ground to a halt in the second quarter and could slip into recession if the weakens more than expected, TD Bank said Wednesday. United States
"I'm sorry, but
" Alexander noted that consumers held up remarkably well during the last recession, but that may not be the case a second time as many are saddled with debt.
In its economic update Wednesday, TD Bank estimated zero growth for
Economists define a recession as two consecutive quarters in which real gross domestic product shrinks.
Last week, Bank of Canada governor Mark Carney acknowledged the Canadian economy was growing at a slower pace than the central bank had expected earlier this year, but noted that he did not expect a return to recession here or in the
Between the third quarter of 2008 and the third quarter of 2009,
TD's new economic outlook calls for the Canadian economy to grow 2.3 per cent for 2011, down from a June forecast of 2.8 per cent. TD also cut its expectations for 2012 to growth of two per cent compared with an previous estimate of 2.5 per cent.
The report came as the Conference Board of
"Negativity towards future job creation and an unwillingness to make a major purchase were the primary signs of this waning consumer confidence," Antunes said.
The survey found pessimism was higher on answers to questions about current and future household finances.
The survey was done between Aug. 4 and Aug. 14, a volatile period for financial markets that saw daily triple-digit swings and debt-rating agency Standard & Poor's downgrade the credit rating of the