Canada’s economy is in ‘suspended animation’ — CEO of Canadian Imperal Bank of Commerce

According to Canadian Imperial Bank of Commerce head, Victor Dodig, the Canadian economy is experiencing a period of stagnation. Major investment projects are frozen, and unemployment has reached 7%, demonstrating four months of weak employment growth.

Dodig believes the current situation does not qualify as a crisis, but a revival of the economy requires lower interest rates, stimulus measures, and a clear trade policy. He also noted that restoring Canada’s reputation as an attractive investment destination will take considerable time, even if all proposed measures are implemented.

A recent Bloomberg survey of economists suggests further slowdown for the Canadian economy this year. The country’s GDP is expected to contract in the Q2 and Q3, followed by modest growth by year-end. The labor market is also showing signs of deterioration, with employment growing very slowly or declining for four consecutive months.