US contraction an omen for Canadian economy, says BMO’s Guatieri
A US recession is nothing but bad news for Canada’s economic health, according to Sal Guatieri, senior economist at the Bank of Montreal.
“If the US does officially contract, it would be very difficult for Canada to avoid a recession,” said Guatieri. “We’re not officially calling for a recession in either country, but it’s basically a coin flip at this stage and both economies are very vulnerable.”
While the central banks of both countries have implemented steep rate hikes in recent months, Guatieri warned that more economic pain is still to come – further eating into much-depleted household purchasing power.