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Recession · Nov 11, 2026

What economists mean by a recession, and how to read the signals

Canada's latest figures show flat output, higher unemployment and stronger retail sales. Here's how to read those signals together, and why two shrinking quarters settle less than you might think.

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Published · 9 min read

Editorial illustration of an open café looking onto a Canadian commercial street in the early morning

Imagine a café owner looking out at the morning traffic. The tables are filling, but the customers arrive later than they used to. A regular who works at a nearby factory mentions that his shift was cut. The owner has enough business to stay open as usual, though she puts off hiring another worker. Which observation tells you whether the economy is shrinking? Each tells you something different.

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recessionCanadian economyGDPunemploymentretail salesbusiness confidence

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