People are right to be concerned, of course. But is it possible their fears are prompted by unduly sensational reports?
The following headline appeared recently in newspapers and broadcast websites: "Canadian economy shrinks 3.4 per cent in the last quarter of 2008." That sounds definite, and pretty dramatic.
It's also an exaggeration. According to Statistics Canada, the Canadian economy fell only 0.8 per cent in the last quarter. That's actually a very modest, and indeed surprisingly small, drop.
The scary 3.4 per cent figure is purely hypothetical. It's what would happen if the same rate of decline continued for an entire year. It assumes 12 months of recession based on three months of experience.
Of course, that might be what happens. Or it might not.
- Read the whole thing
