Canada Could Already Be In Recession, Dollar Could Fall To 62 U.S. Cents

More bad news for Canada’s economy.

While the Canadian Dollar is currently around 75 U.S. cents, it could have a long way yet to fall.

That’s according to David Wolf from Fidelity Investments.

As reported by BNN Bloomberg, “A 17 per cent drop from current levels of around 75 U.S. cents may sound like a lot but the currency has already fallen about 30 per cent from above par in 2011 when Canada’s economic stars were aligned, said the Toronto-based portfolio manager. Back then, the country was revving up from the financial crisis and oil was over US$100 a barrel. Now, the nation may already be in recession after growing at an annualized pace of just 0.4 per cent in the fourth quarter and a pretty “soggy” start to the year, said Wolf, part of the asset allocation team at Fidelity Investments Canada, which manages about $136 billion. He stressed his views were his own, not the firm’s.”

His colleague David Tulk also raised concerns:

“It may not meet that technical definition, but it could very well feel like a recession for a big part of the economy.”

“You’ve never had debt levels as high, relative to incomes in Canada,” said Tulk. Even if the Bank of Canada has stopped raising rates, “there’s still kind of a big bulge in the python, so to speak, in terms of prior increases in interest rates and prior actions.”

These warnings come as the Trudeau government is about to release their latest budget, which will be a desperate effort to distract from their failed economic record.

Spencer Fernando

Photo – YouTube

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Ron Shaw
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The low and dropping Canadian dollar plus an upcoming recession is all on Trudeau , and his finance minister lieing Bill . Never trust elitists , trust fund children or drama teachers with Canadians finances or tax monies . Just the loss of federal income and taxes on Alberta’s lack of pipelines , east , west and south plus investments lost due to the lack of investors being chased away by the likes of liberal lieing bill account for a major part of the low dollar and upcoming recession . My advice is to watch your investments closely , be… Read more »

Christine L McCann
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Christine L McCann

So, the economy is already in the tank, Canadians can already barely pay their bills, but Justin plans to introduce a carbon tax on April 1st. Way to go, Justin!

Carlene
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Carlene

Sure it could. Liberals reckless spending and their socialist ideology the dollar only has one way to go. At .62 cents consider yourself lucky. Under Jean Chretien he got it a bit lower than that. Meanwhile under Harper we were above the U.S. dollar until the world recession hit, but even then we were a lot better. The currency always falls under Liberals rule. History just keeps repeating itself…doesn’t it.

Clive
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Clive

This ought to make the money the Tides Foundation uses to land-lock Alberta oil go further. And if SNC Lavalin can start delivering Canadian water in bulk to the U.S., that will provide those “good, middle class jobs” Turdo keeps talking about. I wonder what kind of tax he can put on water? And will we have to buy it back in little plastic bottles? Turdo’s dad must be spinning in his grave at how thoughtless and gutless his kid has proven to be.