Thu, November 13, 2008
Global recession declared
UPDATED: 2008-11-13 09:47:03 MST
By THE ASSOCIATED PRESS
LONDON — The world’s developed economies, hard hit by the financial crisis, have slid into recession and will shrink further in 2009, a top international organization said Thursday.
In its latest economic forecasts, the Paris-based Organization for Economic Cooperation and Development said gross domestic product was likely to fall by 0.3 percent in 2009 for its 30 member countries, representing democracies with market economies.
It said the U.S. economy would contract next year by 0.9 percent, Japan’s by 0.1 percent and the euro area by 0.5 percent.
Additionally, it was the first time since 1974-5, when they were suffering from the Arab oil embargo and a severe bear market for stocks, that the U.S., Europe and Japan have fallen into recession.
This time, all three are shrinking in the same year; in the wake of the first oil price shock in 1973, Japan saw negative growth in 1974 followed a year later by the U.S. and Europe.
I don't think I need to remind anyone about the job losses the Canadian economy is currently experiencing and these are not just any jobs but jobs that one can raise a family on. Just recently Nortel Networks anounced job cuts and may go into bankruptcy. CanWest Global Communications will cut 560 jobs from its workforce. Ford Motor Co. plants in Oakville and St. Thomas, Ontario, among others, will be idled for three weeks in December. Even Bay Street jobs are being axed. This is to say nothing of the jobs that have been lost.
Of course, we are told, that other parts of Canada are doing fine. Perhaps, but to what extent? What jobs are available there and are there enough for those who are out of work in hard hit central Canada?
What is clear is that this is no time to be bringing in over 250,000 immigrants and an equal amount of temp workers. Canadian families and recent immigrants need to be protected to help weather the storm and cutting immigration targets is one way to do it.