2009 Depression, says Canadian economists

POLITICS - Canadians should brace themselves for another year of trouble in the domestic economy, and it could even be worse than last year according to Canada's leading bank economists who are projecting that the global recession will gain momentum in Canada during early 2009 and North America will fall into depression.

At a gathering of economic minds at the Economic Club of Canada in Toronto, TD Bank chief economist Don Drummond said challenges faced by the U.S. will start to be felt more keenly in Canada during the first quarter.

The global economic meltdown will continue to affect Canada for at least the first half of the year before it returns to growth, which will even then be lower than normal.

Bank of Montreal economist Sherry Cooper says she believes government policies and monetary stimulus will bring the country out of a recession. "At the end of the day will have outperformed much of the rest of the world, certainly the rest of the G7," she said.

Critics have questioned whether Ottawa should create jobs using public works projects.