Canadian bank expects short-lived recession in 2023

TORONTO (AP) — A report by the Royal Bank of Canada says the country is headed towards a recession in 2023, but it will be short-lived and not as severe as prior downturns. RBC economists say that soaring food and energy prices, rising interest rates and ongoing labor shortages will push the economy into a “moderate contraction″ next year. RBC said Thursday it expects the unemployment rate to reach 6.6% in 2023, but doesn’t think it will take long to reverse some of that weakness in 2024 and beyond. The unemployment rate dropped to 5.1% in May, the lowest level on record.