FXStreet reports that according to Craig Wright from the Royal Bank of Canada (RBC), Canada will experience a technical recession in 2020, as economic activity contracts in the second and third quarters of the year. 

“We’ve made significant downward revisions to our fore-cast and now look for real GDP to increase at a modest 0.8% pace in Q1 followed by two quarterly declines of 2.5% and 0.8% in Q2 and Q3 respectively.”

“We expect the bank will increase policy support at upcoming meetings and forecast the overnight rate will fall to match the  record low of 0.25%.”

“We see further downside for Canada’s dollar in the current anxiety-ridden environment and the persistence of low oil prices and are forecasting the currency will continue to weaken into mid-year before recovering modestly.”