Canada, Recession and European Depression

Canada has announced in glorious fanfare (sic) that their economy is now tanking as badly as the United States.


The world’s eighth largest economy shrank at a 5.4 percent annualized pace in the first quarter, Statistics Canada said June 1, the most since 1991. Gross domestic product will shrink 3 percent this year, the central bank predicts. That would be the biggest drop since 1933, according to Statistics Canada.

The U.S. economy shrank at a 5.7 percent annual pace in the first quarter.

What is interesting, most reports on Canada is tout stability, banking sound, weathering out the crisis well and in economic recovery.

You must check out this blog, News from 1930.

The site posts news from the Wall Street Journal.... only they are the articles from 1930.

A VOX blog post from June 4th, A Tale of Two Depressions is now being heavily cited, possibly due to the confirming statistics in the World Bank Report.

There is a reason this post is being referenced around the economics realm. It shows that the global recession is mirroring the Great Depression in statistics:

New findings:

  • World industrial production continues to track closely the 1930s fall, with no clear signs of ‘green shoots’.
  • World stock markets have rebounded a bit since March, and world trade has stabilised, but these are still following paths far below the ones they followed in the Great Depression.
  • There are new charts for individual nations’ industrial output. The big-4 EU nations divide north-south; today’s German and British industrial output are closely tracking their rate of fall in the 1930s, while Italy and France are doing much worse.
  • The North Americans (US & Canada) continue to see their industrial output fall approximately in line with what happened in the 1929 crisis, with no clear signs of a turn around.
  • Japan’s industrial output in February was 25 percentage points lower than at the equivalent stage in the Great Depression. There was however a sharp rebound in March.

Looks like Paul Krugman reads blogs and he also doesn't say Ni!.

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It's amazing how one country's economy can have such an impact on everyone else's.