Dr. Doom has gotten even gloomier about the U.S. economy.
Speaking to reporters in Toronto Wednesday, New York University professor Nouriel Roubini said the odds of a double-dip recession in the U.S. within the next year stand at 40 per cent.
And Canada won't be immune, he added.
“Canada has its own sources of economic strength...but it can not fully decouple from the U.S.”
He expects the Bank of Canada will now pause in raising rates, after the it raised its key lending rate to 1 per cent Wednesday.
Dr. Roubini, who predicted the U.S. recession, started this year estimating the odds of another downturn at 25 per cent. He is speaking at a C.D. Howe Institute dinner.
He wasn't impressed by the latest round of better-than-expected U.S. economic reports, saying the results, particularly in the labour market, remain “dismal.”
Even if the economy doesn't slide back into a technical recession, it will still feel like a recession for many Americans, he said.
Efforts on the monetary and fiscal side to bolster the U.S. economy won't have much of an impact because “fundamental debt problems” have yet to be resolved, he added.
