TIMELINE OF RECESSIONS IN CANADA
1929: The Great Crash The Roaring ’20s come crashing down when the stock market collapses, with billions of dollars lost in the process. The economic downturn lasts until the mid-1930s, spurring the Great Depression.
1937: Economic downturn in the Great Depression Another economic collapse in the U.S. knocks back the Canadian economy in 1937. Production of durable goods drops and unemployment rises, impacting the Canadian economy as trade between the two countries lessens. The recession ends in 1938.
1947: Post-war transition A mild recession hits Canada two years after the Second World War ends. The GDP falls in the third quarter of 1947 and again in the first quarter of 1948.
1951: Economic reaction during Korean War It’s 1950 and inflation in Canada reaches 10 per cent as the Korean War is declared. To keep inflation in check consumers are hit with a 20 per cent surtax and a 25 per cent tax on durable goods. The recession lasts about seven months in 1951.
1953: Defence spending drops The Canadian economy slows quickly as defence spending for the Korean War drops drastically and employment falls in the last three quarters of 1953. The first quarter of 1954 also shows a sharp drop in GDP. The recession lasts from July 1953 to July 1954.
1957: Industrial production drops The GDP falls in three of the four quarters in 1957 as industrial production drops, brought on by an end to the investment boom that occurs after the Korean Armistice in 1953.
1959-61: The Coyne Affair Prime Minister John Diefenbaker’s office publicly disagrees with Bank of Canada Governor James Coyne on how to handle Canada’s recession. Government officials urge Coyne to lower interest rates. Instead, the bank’s governor heavily criticizes the government’s excessive spending and borrowing, which he says is creating a debt crisis. Tensions come to a head, leading to Coyne’s resignation.
1974: The ’70s recession Soaring economic growth comes to a sudden stop as a financial crisis in the U.S. results in a severe recession south of the border. Canadian exports to the U.S. drastically decline in 1974.
1980: Keeping credit in check The U.S. introduces credit controls to curb soaring inflation, triggering a slump in Canada’s housing and auto exports. The GDP drops in the first two quarters.
1981: Soaring interest rates The economy grows for three quarters at the end of 1980, but interest rates soar above 20 per cent, remaining high until spring 1982. Unemployment reaches a high of 12 per cent, but the economy begins to recover in 1983.
1990: Introducing GST The Canadian economy slows from cutbacks in manufacturing. The GDP drops significantly in the first quarter of 1991, as the combination of the Gulf War and the introduction of the goods and service tax (GST) depresses consumer spending.
2008: Global financial crisis The global financial crisis drags down the Canadian economy (although the effect on Canadians is milder than the U.S. and Europe). However, the collapse of oil prices and other Canadian commodity exports leads the country into a recession.