The reasons behind economic downturns remain largely unsolved. However, there are several traditional explanations to the phenomenon.The traditional explanations postulate that recessions are caused by events that have an economy-wide impact, such as an

increase in interest rates

decline in consumer confidence.

Firms reduce output and lay off workers, which further decreases demand, and the economy slows even more. In Canada our Exports especially to USA.

Read…: http://rebatereps.ca/2011/09/recession/