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What is a "technical" recession and how does it affect BC?

BCREA ECONOMICS NOW

Canadian Monthly GDP (May) - July 31, 2015

Canadian real GDP contracted a larger than expected 0.2 per cent in May, the fifth straight monthly decline. Falling economic activity resulted from a decline in output in the manufacturing, mining, and oil and gas sectors. 

May's GDP numbers virtually assure that Canadian economic growth will be negative in the second quarter, with GDP tracking a decline of 0.6 per cent. Assuming the modest decline in the first quarter is not revised higher, Canada will be in what some refer to as a "technical" recession. It is important to note that most economists quibble with that rather mechanical definition, preferring to look at trends across a broad range of economic indicators to determine changes in the business cycle. Also, current weakness in the economy is very sector specific and mainly focused in energy producing regions of Canada. The non-energy intensive BC economy, for example,  has grown at an estimated annual rate of over 2 per cent thus far in 2015. 

For more information, please contact: 

Cameron Muir Brendon Ogmundson
Chief Economist Economist
Direct: 604.742.2780 Direct: 604.742.2796
Mobile: 778.229.1884 Mobile: 604.505.6793
Email: cmuir@bcrea.bc.ca Email: bogmundson@bcrea.bc.ca

The British Columbia Real Estate Association (BCREA) is the professional association for more than 18,500 REALTORS® in BC, focusing on provincial issues that impact real estate. Working with the province’s 11 real estate boards, BCREA provides continuing professional education, advocacy, economic research and standard forms to help REALTORS® provide value for their clients.

Real estate boards, real estate associations and REALTORS® may reprint this content, provided that credit is given to BCREA by including the following statement: “Copyright British Columbia Real Estate Association. Reprinted with permission.” BCREA makes no guarantees as to the accuracy or completeness of this information.

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