Kelowna

Now:

What

is

'Stagflation'?

And,

why

Should

Canadians

Fear

it?

By Steve MacNaull

May 22, 2024

Excerpts from article:

Mash together stagnant and inflation and you get 'stagflation'.

It's what's happening in Canada's economy right now -- 3% inflation and nominal growth of 1%.

"What that means in reality is there's a contraction in the economy of 2% annually," said Stephen Johnston, a director with Omnigence Asset Management in Calgary.

"Real GDP (gross domestic product) per capita is going down and there's a reduction in people's wealth and standard of living. And, it's the middle class that's hurt the most by stagflation."

Full article here