Scotiabank: Recession for Canada, U.S.

Published: Oct. 6, 2008 at 8:47 AM

OTTAWA, Oct. 6 (UPI) -- One of Canada's largest banks is warning its customers that recession will hit Canada and the United States, CTV News reported Monday.

The Scotiabank economic forecast seen by the broadcaster in Ottawa said the downturn is likely to last well into 2009, with the United States feeling it more acutely than Canada.

"Canada's subprime market is only (5 to 6 percent) of outstanding mortgages whereas the U.S. is over three times that amount. Canadians are also more conservative and have lower debt tolerance than the U.S., while the funding model is also completely different," the forecast says.

Apart from housing, the Scotiabank report predicted falling auto manufacturing and sales and dips in employment rates.

Peter Navarro, an economist at the University of California, Irvine, told CTV he tends to agree with the assessment for both countries.

"I see a prolonged recession given the track we're on," Navarro said. "Canada is tightly coupled to the U.S. economy, so whatever we feel here, Canada is going to feel as well."

© 2008 United Press International, Inc. All Rights Reserved.
Order reprints



Additional News Stories
Technology ID's gender of very young birds (<1 min)
Watercooler Stories
Jockstrip: The world as we know it.
Your Daily Horoscope
The almanac
Holidays make alcohol available to teens
COL BKB: California 79, Jacksonville 47
fark
Ten secret text message codes parents need to pay special attention to. NALOPKT
You know that guy who spent 23 years in a coma but aware of everything going on? Even money says...
Police searching for the grinch or grinches who crushed a gingerbread town containing 650 gingerbread...
Lovers reportedly have sex in clock tower in broad daylight - of course that's only second hand
Irish turn their annual Christmas lighting ceremony into a drunken riot. Once again
Musician appeals for return of stolen tiki. The curse never ends, Greg