You’ll excuse Canada’s exchange traded fund (ETF) for feeling a little glum these days: the finance minister say the country may be in a technical recession.

Since the economy is expected to contract in the current and next quarter, it’s technically a recession, reports Frank McGurty for Reuters. The rapid global deflationary pressure may force the country’s government to take strong action in the form of a fiscal stimulus.

Last week, Canada experienced a big financial selloff in anticipation of borrowing costs further dropping, giving iShares MSCI Canada (EWC) some action.

Canadian currency is on the drop however, to its lowest level in three years. Today, however, the currency is showing signs of a rebound and is on pace for its largest one-day gain in a month, Reuters says. This quarter alone, the Canadian loon has lost 17%, while crude oil accounts for 21% of the Bank of Canada’s Commodity Price Index.

Updated projections on the state of the country’s economy are expected on Thursday.

EWC is down 46.3% year-to-date.

Tags: Bond ETFs, Canada, Commodity ETFs, Currency ETFs, EWC