Weekly Digest – 08 May 2024
Welcome to our Weekly Digest – stay in the know with some recent news updates relevant to business and the economy.
Tiff Macklem defends Bank of Canada’s two per cent inflation target
Bank of Canada Governor Tiff Macklem defended the central bank’s two per cent inflation target as the key benchmark for setting interest rates on Wednesday under questioning from Canadian senators on the standing committee on banking, commerce and the economy in Ottawa.
Provincial governments facing higher debts and more financial pressure
After riding a red-hot economy to shrink deficits and grow surpluses, provincial governments across the country are beginning to see their finances flounder. Each province has released their budget for the upcoming year and collectively are facing higher spending and record-size debt.
Canada’s output per capita, a measure of standard of living, plummets
Real output per capita has fallen to seven per cent below its long-term trend since the pandemic, resulting in a decline of roughly $4,200 per person, according to a new report by Statistics Canada.
Canadian economy loses steam after strong start to year, grows 0.2% in February
The Canadian economy lost momentum after a roaring start to the year, reinforcing economists’ expectations that the Bank of Canada is on track to cut interest rates in the coming months.
Ottawa’s capital gains tax hike – is this the final nail in the ‘business investment’ coffin?
According to the recent federal budget, the Trudeau government plans to increase the inclusion rate from 50 per cent to 66.7 per cent on capital gains over $250,000 for individuals and on all capital gains realized by corporations and trusts. Will this tax hike be the final nail in the coffin for business investment in Canada, and mean harder economic times ahead?
Housing crisis. Foodflation. Record gas prices. Canada is at a crossroads, and it all comes down to the P word …
The Bank of Canada’s Senior Deputy Gov., Carolyn Rogers, delivered a speech in Halifax last month where she emphasized Canada’s weak productivity has reached an “emergency situation” that demands urgent attention.
Trans Mountain pipeline ushers in new economic era for Fort McMurray
As the urban centre at the heart of Canada’s oilsands industry, Fort McMurray has seen more than its share of ups and downs. Now, with the official opening of the long-awaited Trans Mountain pipeline expansion just days away, those who live and work in this region hope their fortunes are once again headed for an upswing.
Loonie ‘caught in the crosshairs’ amid shifting Fed rate cut expectations: TD Economics
Following the latest interest rate decision from the U.S. Federal Reserve, economists at TD Bank are predicting only one interest rate cut this year in the U.S. while adding the rate path could have implications for the loonie.
Disappointing number’: economists react to latest GDP data
Economists believe Canada’s latest economic data will persuade the Bank of Canada to make its first rate cut of this tightening cycle in June, marking a significant divergence from the U.S. Federal Reserve.
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