Financial turmoil may undermine economic recovery

Should the global economy slow more sharply than even our distinctly bearish global forecasts, then we think equity prices in Canada could slide much further into red territory, as would commodity prices no doubt. This scenario would undermine consumer confidence and possibly business investment, which would put Canada's economic growth prospects at risk. But for now, we do not think such a scenario is likely, despite the sudden financial market upheaval witnessed over the past few days.