Recovering from the great recession In mid-2009, the world economy began to emerge from the most severe financial crisis since the Great Depression. In Canada, the recession lasted for three quarters, from the latter months of 2008 to mid-2009. Our exports fell dramatically in response to a steep drop in U.S. demand. Firms cut back on employment; some 417,000 jobs were lost.
In response to the weaker labour market, declines in net worth and increased uncertainty, household spending also fell. Government spending was the only consistent source of growth throughout this period. Despite these challenges, Canada’s recovery has been stronger than that of our G-7 peers.