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Analysts at Goldman Sachs argue that the Canadian economy is on a verge of diving into recession in the first quarter of 2020 amid the collapse in oil prices.

Key quotes

“The collapse in oil prices is pushing Canada towards recession.

2020 GDP growth forecast slashed to +0.2% from +0.7% previous.

Expects 0% in Q1, -0.5% in Q2, 0.25% in Q3 and 1% in Q4.

Bank of Canada (BOC) likely to cut by 100 basis points to take rates back to the 2009-10 low of 0.25%.”