The collapse in oil and in other commodities is hurting Canada. But what is particularly interesting from an American perspective is that the slowdown is bleeding through the middle of the continent, from Alberta, through the upper Midwest and even down into Texas. (As we noted months ago was likely to happen.)
Canada is teetering on the edge of a recession.
The country’s GDP has fallen for five straight months, the latest numbers coming in at a 0.2 percent contraction in May. And economists say Canada is about to hit its second-straight quarter of declining GDP, the technical definition of a recession.
Contributing to Canada’s problems include plunging commodities prices, slowing exports and a falling Canadian dollar. The tumble in crude oil, which has fallen more than 15 percent year to date, has hit Canada hard as a commodities-heavy economy.