Second quarter to be worst since recession: CIBC
High household debt and soaring energy and food prices will make the second quarter of 2011 Canada’s weakest since the recession, says a new report by CIBC. Avery Shenfeld, Chief Economist at CIBC and author of the report, tells BNN the Canadian economy will probably see tepid growth.
“We might see as little as one percent growth [in the second quarter] and that relies on June being a sunnier month than the weather has been…it’s a quarter of a real pause,” he says.
But Shenfeld says the second quarter may not be a harbinger of what’s to come.
“It has raised questions on whether this is just a bump in the road or the start of something worse…and we’ve seen signs that Q3 will be better,” he says.