Former Bank of Canada Governor Mark Carney, while speaking in Calgary at the Alberta Relaunch 2022 conference, said the US is likely headed into a recession, but Canada may be spared. .Carney, now the vice chair of Brookfield Asset Management, was one of several keynote speakers at the Tuesday conference, hosted by New West Public Affairs. The event focused on discussion topics including energy, climate policy, technology and innovation, public health, politics, and government..Carney said he believes the probability of the US slipping into a recession is "uncomfortably high over the course of the next year," but said it would likely be "relatively mild" compared to what transpired when the US housing bubble burst in 2008, leading to the largest financial crisis since the Great Depression. ."It's not 2008 because there's not a bunch of big imbalances in the system," said Carney adding, "but as a whole, they're not over their skis in debt, in the US particularly." ."So that's the good news. The bad news, or less good news, is this isn't 2000–2001 where we had the dot-com crash and we had a recession, a mild recession, and the central banks got flooded with support and the world was liberalizing trade."."We were deregulating, we were cutting corporate taxes — everything was moving in the tailwinds. And when you think about what's going on, we have a bracketed history, from the Berlin Wall to the Russian invasion, and those forces are going in the other direction.".Alberta and Canada as a whole are "in a better position than virtually any other country," said Carney, adding Canada has "the potential to have the benefit of what's needed in the reworking of the energy system and the transition, which is why we need to act with speed." .He said it was "less likely" Canada will see a recession.."Look, I think it's more likely than not that there's a recession in the United States and globally, but it is less likely that there is one here and we can also help to determine that destiny."
