Recession 'almost inevitable' Winnipeg economist says
As she walks through the aisles at the supermarket, Susan Meged says the price of produce and other groceries is hard not to notice.
“(It's) ridiculously high,” said Meged. “One week something is $1.99, then you go back and it’s $3.99 the next week.”
As a result, she has had to change her habits by cutting back on the extras like eating out and travel.
“Didn’t go on holidays this year, nothing, nothing, couldn’t do what I usually do,” she said.
To curb soaring inflation, the Bank of Canada has been raising interest rates over the spring and summer to slow demand. Because of that, there are predictions a recession is coming, where the economy shrinks in back-to-back quarters.
University of Winnipeg Economist Phil Cyrenne says that could lead to job losses in some industries.
“I think a recession is almost inevitable,” said Cyrenne.
The economist said a recession could impact sectors like home construction and auto sales, because higher interest rates will push some away from borrowing money for large purchases.
“Which then reduces the amount of sales and the amount of expected business for these companies and that’s why as we go into a recession you might also see layoffs,” said Cyrenne.
In Winnipeg, there has been a slow down in housing sales in August and into September. Peter Squire from the Winnipeg Regional Real Estate Board said things could be returning to pre-pandemic sales levels.
“Clearly, we may see some unsettled times in 2023,” said Squire, adding the housing market is an economic driver. “So if you slow down our resale activity through our MLS and our home builders and what they can build and sell, then you're hurting the economy.”
Caught between inflation and a potential recession, Meged said she is locked into her mortgage rate. But she worries about people she knows who are struggling to keep up with their home payments.
“They work overtime whenever they can get it, lots of overtime, but I feel bad for them because they have to be with their families,” said Meged.
CTVNews.ca Top Stories
BREAKING Bob Cole, veteran CBC broadcaster and former voice of 'Hockey Night in Canada,' dead at 90
Bob Cole, legendary CBC broadcaster and former voice of Hockey Night in Canada, has died. He was 90.
Harvey Weinstein's 2020 rape conviction overturned by N.Y. appeals court
New York's highest court on Thursday overturned Harvey Weinstein's 2020 rape conviction, reversing a landmark ruling of the #MeToo era in determining the trial judge improperly allowed women to testify about allegations against the ex-movie mogul that weren't part of the case.
Honda to get up to $5B in govt help for EV battery, assembly plants
Honda is set to build an electric vehicle battery plant next to its Alliston, Ont., assembly plant, which it is retooling to produce fully electric vehicles, all part of a $15-billion project that is expected to include up to $5 billion in public money.
MPP Sarah Jama asked to leave Ontario legislature for wearing keffiyeh
MPP Sarah Jama was asked to leave the Legislative Assembly of Ontario by House Speaker Ted Arnott on Thursday for wearing a keffiyeh, a garment that is banned at Queen’s Park.
CTE: Researchers believe widespread brain injury may contribute to veteran suicide rate
Researchers are working to better understand if some Canadian military veterans may be suffering from Chronic Traumatic Encephalopathy, also known as CTE -- a disorder previously found in the brains of professional football and hockey players after their death.
1 arrested in northern Alberta during public shelter order
Residents of John D'Or Prairie, a community on the Little Red River Cree Nation in northern Alberta, were told to take shelter Thursday morning during a police operation.
Secret $70M Lotto Max winners break their silence
During a special winner celebration near their hometown, Doug and Enid shared the story of how they discovered they were holding a Lotto Max ticket worth $70 million and how they kept this huge secret for so long.
Remains from a mother-daughter cold case were found nearly 24 years later, after a deathbed confession from the suspect
A West Virginia father is getting some sense of closure after authorities found the remains of his young daughter and her mother following a deathbed confession from the man believed to have fatally shot them nearly two decades ago.
New deep-water channel allows first ship to pass Key bridge wreckage in Baltimore
The first cargo ship passed through a newly opened deep-water channel in Baltimore on Thursday after being stuck in the harbor since the Francis Scott Key Bridge collapsed four weeks ago, halting most maritime traffic through the city's port.