When the U.S. housing market went belly-up in 2007-2008, taking the global economy with it, Canada, unlike most of the world’s richest economies came through relatively unscathed. But some six years in, many of the same conditions that preceded the U.S. housing crash and subsequent global meltdown are popping up in Canada. Scarier still are expectations that Canada’s economy will be saved by a U.S. recovery.
Resource-rich Canada, like Australia, was shielded from the worst of the crash by the global commodities boom and rising energy prices. Supported by a 1% interest rate set by the Canadian central bank, Canada’s housing sector continued to thrive and prices to rise, creating a wealth of construction jobs. Canada was able to add 900,000 jobs and lower its unemployment rate 7.2%, down from 8.7% at the depth of the recession, according to the Financial Post.