A technical recession has traditionally been defined as two consecutive quarters of negative real GDP growth. This year, Canada escaped an official recession last quarter due to an upward revision of the second quarter annualized figure from negative 0.2 percent to plus 1.4 percent. The revised figure would have been considered weak in a happier time when 3 percent growth a year was the norm. Q3 2023 came in at an annualized negative 1.06 percent. If Q2 would have stayed negative, we would have entered a technical recession using the classic definition.
It is worth noting that if Q4 comes in as negative and there is not a significant upward revision of the Q3 figure, then a recession will have officially begun at the end of Q2. It should also be pointed out that two of the last four quarters have seen a loss in GDP. During the last 12 months, growth has been about 0.5 percent, which is dismal.

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