Higher interest rates, ‘the harsh medicine needed to cool inflation,’ are already being felt by businesses and workers.
The pandemic thrust two brutal years on his once-thriving downtown Thai restaurants. Now, hope for a successful recovery is fading, and like so many small business owners in Toronto, Liu sees nothing but more turmoil ahead.
Most economists agree that a recession is now inevitable, thanks to the Bank of Canada’s decision to hike the overnight rate at a fast and furious pace. But what originally looked like a brief and painless recession is now turning into something to be feared. In times of recession, businesses struggle, wages fall, jobs are lost, assets lose value, and the country’s overall economic well-being declines.
The upshot is that it’s the Canadian workers in manufacturing — who dodged the impact of the pandemic shutdowns — who will likely catch the brunt of next year’s downturn, Fan said.
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