A new report by the Canadian Centre for Policy Alternatives says the country has been hit hard by the country’s current election and that the country could see another massive economic decline if the Liberals win a majority.
The report, released Wednesday, says the current level of economic growth is likely to be “in the single digits” if the Conservatives win a second term.
The Liberals will take power after a four-year election that saw the Liberals take control of the House of Commons and the throne.
The report notes that, after the Conservatives lost the 2011 election, they experienced a “dramatic drop in economic activity” as the economy slowed.
In the first six months of 2016, GDP fell 0.5 per cent.
In comparison, the Liberal government had a cumulative economic growth rate of 7.4 per cent in the same period.
That means the Liberals are projected to be in the bottom third of Canadian economies in the first year of a second consecutive term, the report said.
According to the CPP report, Canada’s economy is currently experiencing a recession, with a “double dip recession” that is “significantly worse than that of the Great Recession of 2007-08.”
“The Canadian economy was already on the brink of a double dip recession in the second half of 2016,” the report states.
“The current economic slowdown is likely worse than the Great Depression of the 1930s.”
The report also says that the Liberals’ record on climate change, the Keystone XL pipeline and other issues has been “a huge blow to Canadian businesses.”
It also says the Liberals have “shown a clear disdain for the sovereignty of Canada’s northern territories,” and have been unwilling to act on their commitment to renegotiate NAFTA.
The Conservatives, meanwhile, have “failed to address the impact of the global recession on the middle class,” the CEP report states, noting that the Conservatives have only proposed “a modest tax increase” on Canadians earning more than $100,000.
It also said that while Canada’s unemployment rate is at 5.7 per cent, “it is likely much higher” because many people have given up looking for work.
It’s the first time the CPA has been commissioned to look at economic trends in Canada.
In addition to the report, the Centre for the Study of the Economy released a report on Wednesday on Canada’s future.
It said the next recession could take the form of a recession or “a partial recession,” depending on how the country responds to economic conditions.
The study says that if the economy slows to the point of “double dips,” the country is likely in the third or fourth recession in Canada’s history.