StatsCan: Previous recessions were worse

Statistics Canada reports that even though the 2010 recession was swift to take hold and was a steep fall, it was nothing compared to the two previous ones: 1981-1982 and 1990-1992.

Although Canada’s output did decline in a big way, Canada bounced back quicker than other nations. In fact when it comes to real output, private domestic demand and employment, Canada is the only G7 nation to have recoup what it had lost during the recession.

In terms of output, the contraction that occurred during 1981-1982 had the largest peak-to-trough decline. But it was uneven, with several months of growth interspersed in a steep downward trend, followed in 1983 by the sharpest recovery of the three cycles.

The 2008-2009 downturn was not as deep overall as the 1981-1982 recession. Nevertheless, it set a post-war record for the most months (eight) of uninterrupted decline, a testament to the severity of the onset of the global economic and financial crisis.