A second wave of COVID-19 and another round of sweeping lockdowns could have a “very serious” impact on the Canadian economy and must be avoided, Bank of Canada Deputy Governor Lawrence Schembri said on Thursday.
Schembri, taking questions from a business audience, said employment and spending had dropped sharply since mid-March when “a fairly broad-based lockdown” was imposed.
Canadian officials shuttered most non-essential businesses and urged people to stay home to slow the spread of the coronavirus. In recent weeks, most regions have gradually started to reopen.
“If a second wave was relatively severe as the first wave was … I think that could … have another very serious impact on the Canadian economy,” Schembri said. “We need to avoid that happening again.”
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Earlier, Schembri said Canada’s central bank expected the economic recovery to have two phases and be prolonged and uneven, with a relatively quick reopening and then a longer recuperation, which will vary by region.
Households, the bank said, would remain cautious with their spending until a coronavirus vaccine is available.
5:49 Can Canada handle a 2nd wave of COVID-19?
Can Canada handle a 2nd wave of COVID-19?
“The uncertainty around this recuperation stage is extraordinary and points toward a recovery that will be gradual and long-lasting as this uncertainty slowly dissipates,” he said.
“Cautious spending behavior on the part of households will likely continue until a vaccine becomes available.”
Bank of Canada Governor Tiff Macklem said on Tuesday the bank remained focused on using its policy tools to support Canada’s economic recovery. The bank slashed its key interest rate three times in March to a record-low 0.25 per cent.
Mortgage and other credit deferrals have helped keep Canadians from seeking additional loans, Schembri said, adding people could fall behind on payments if incomes do not recover when deferrals end.
The Canadian dollar maintained its earlier decline, down 0.3% at 1.3610 to the greenback, or 73.48 U.S. cents.
TORONTO – Strength in the base metal and technology sectors helped Canada’s main stock index gain almost 100 points on Friday, while U.S. stock markets also climbed higher.
The S&P/TSX composite index closed up 93.51 points at 23,568.65.
In New York, the Dow Jones industrial average was up 297.01 points at 41,393.78. The S&P 500 index was up 30.26 points at 5,626.02, while the Nasdaq composite was up 114.30 points at 17,683.98.
The Canadian dollar traded for 73.61 cents US compared with 73.58 cents US on Thursday.
The October crude oil contract was down 32 cents at US$68.65 per barrel and the October natural gas contract was down five cents at US$2.31 per mmBTU.
The December gold contract was up US$30.10 at US$2,610.70 an ounce and the December copper contract was up four cents US$4.24 a pound.
This report by The Canadian Press was first published Sept. 13, 2024.
OTTAWA – Statistics Canada says wholesale sales, excluding petroleum, petroleum products, and other hydrocarbons and excluding oilseed and grain, rose 0.4 per cent to $82.7 billion in July.
The increase came as sales in the miscellaneous subsector gained three per cent to reach $10.5 billion in July, helped by strength in the agriculture supplies industry group, which rose 9.2 per cent.
The food, beverage and tobacco subsector added 1.7 per cent to total $15 billion in July.
The personal and household goods subsector fell 2.5 per cent to $12.1 billion.
In volume terms, overall wholesale sales rose 0.5 per cent in July.
Statistics Canada started including oilseed and grain as well as the petroleum and petroleum products subsector as part of wholesale trade last year, but is excluding the data from monthly analysis until there is enough historical data.
This report by The Canadian Press was first published Sept. 13, 2024.
TORONTO – Canada’s main stock index was up more than 150 points in late-morning trading, helped by strength in the base metal and energy sectors, while U.S. stock markets were mixed.
The S&P/TSX composite index was up 172.18 points at 23,383.35.
In New York, the Dow Jones industrial average was down 34.99 points at 40,826.72. The S&P 500 index was up 10.56 points at 5,564.69, while the Nasdaq composite was up 74.84 points at 17,470.37.
The Canadian dollar traded for 73.55 cents US compared with 73.59 cents US on Wednesday.
The October crude oil contract was up $2.00 at US$69.31 per barrel and the October natural gas contract was up five cents at US$2.32 per mmBTU.
The December gold contract was up US$40.00 at US$2,582.40 an ounce and the December copper contract was up six cents at US$4.20 a pound.
This report by The Canadian Press was first published Sept. 12, 2024.
