Recession ‘virtually guaranteed’ amid energy squeeze: David Rosenberg

Posted by Jon Mace,

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David Rosenberg said its growing increasingly likely Canada will fall into a period of recession in the near-term as the headwinds against the economy continue to stack up.

“Compounding all the other issues on the supply side globally is this energy squeeze we’re seeing,” said Rosenberg, chief economist and strategist at Rosenberg Research, in an interview.

“This is a huge margin squeeze for most producers, and it’s a huge hit to the purchasing power for the 70 per cent of the economy, otherwise known as the consumer.”

Those other issues he’s referring to include global supply chain disruptions, concerns about inflation running too hot, and labour shortages, not to mention the still present threat of COVID-19 outbreaks and business restrictions.

His comments come amid a volatile week for energy prices, amid more robust than expected oil inventories in the U.S., and as Russia offered to help ease Europe’s natural gas crisis…read more.