Business Cycle Recovery Phase
The Business Cycle Recovery Phase was brought about by both an increase in domestic investment and a revived export demand. Probably the first evidence of a business cycle phenomenon in Canada happened 1854-59. A peak in economic performance, linked with the demand growth contributed about by the Crimean War and the Reciprocity Treaty with the US, was followed in 1857 by a recession brought about by factors which included a slackening in the pace of railway construction.