Many people remember this as the so-called China shock, and not a few have pointed out its similarity with the current phase. However, looking more closely, there also seem to be some differences between then and now (Chart 4). First is the degree of the declines in exports and production.
And Canadians can continue to rely on the Bank of Canada to deliver on its inflation target and, in doing so, support a better functioning and more stable labour market. Canada’s labour market has recovered from the recession better than most, and continues to expand at a modest pace.