Economy

Province continues to push economy forward to recovery in throne speech – Calgary Herald

Published

3 years ago

February 22, 2022

The speech points to Alberta’s fertile ground of low taxes and high quality of life as pushing the province to the front of the line for economic growth in Canada

Publishing date:

Feb 22, 2022 • 41 minutes ago • 3 minute read • Join the conversation

Premier Jason Kenney on Thursday, February 17, 2022. Photo by Azin Ghaffari/Postmedia

Tuesday’s throne speech pledged continued action from the UCP government to help businesses and the economy bounce back from two years of pandemic through legislation and the existing Alberta Recovery Plan.

The speech, read by Lt.-Gov. Salma Lakhani, said Alberta’s low taxes and high quality of life are pushing the province to the front of the line for economic growth in Canada, which has led to major investments by companies such as Amazon.

“We see this economy firing on all cylinders, it’s obviously benefiting from strong oil and gas prices, but we are seeing dynamic growth in virtually every Alberta industry and diversification happening like never before,” said Premier Jason Kenney.

Alberta’s Recovery Plan was announced in 2020.

There was, however, no mention of new sector-specific supports or other sources of funding as businesses continue to dig themselves out from pandemic-induced debt that for some, particularly in the hospitality industry, has reached the millions of dollars.

Annie Dormuth, a provincial affairs director for the Canadian Federation of Independent Business, was encouraged by some of the announcements in the speech, but was holding off on major pronouncements until she had a chance to look at the budget when it is released on Thursday.

Deborah Yedlin, president and CEO of the Calgary Chamber of Commerce, called the speech a “good first step” but also wants to see details of the budget.

“I think we were all hoping for something a little more specific because we’re still emerging from a very challenging time in Alberta’s history, and to see a bit more detail in terms of where the province wants to focus its attention and its funding would be helpful,” she said.

Many industries are struggling to fill skilled and unskilled jobs to recover to pre-pandemic levels. The speech makes no mention of efforts to address these challenges.

Dormuth said staffing issues affect 46 per cent of their membership in Alberta.

“Any type of investment, working at the labour shortage . . . and getting the right skills and training would be helpful.”

She called for tax credits for small businesses and work-integrated learning programs.

Opposition NDP Leader Rachel Notley said there needed to be a more specific commitment to job creation beyond vague promises and the continuation of old programs.

“There’s nothing specific about revitalizing Calgary’s struggling downtown. In fact, the only mention of Calgary in the speech is on the Calgary Cancer Centre, a project our NDP government approved after over a decade of Conservative dithering,” Notley said in a news release.

NDP Leader Rachel Notley speaks to reporters on Scotsman Hill on Wednesday, February 9, 2022. Photo by Brendan Miller/Postmedia

There was also no mention of the agricultural industry and supports or insurance reform to help producers deal with one of the worst growing years in generations in 2021. A lack of accumulated moisture over the mild winter is already causing concerns of another difficult year ahead for southern Alberta farmers.

The speech did say the government would continue to push economic diversification and continued support of green initiatives, such as the Oil Sands Pathways to Net Zero Alliance, while pushing the federal government for incentives for investment in carbon capture utilization and storage technology. Kenney also doubled down on a November promise to push ahead with the Clean Hydrogen Centre of Excellence.

Scott Crockatt, vice-president of the Business Council of Alberta, said the direction is critical to selling the rest of Canada and the world on Alberta. He supported telling the story of the work Alberta has done to be at the forefront of clean energy and to be a more welcoming and inclusive province.

“Frankly, that’s essential to attracting people and capital here,” he said. “It’s poorly understood elsewhere in the country how much Alberta companies are already doing to decarbonize and to address climate change. Many people’s perceptions are still 10 and even 20 years old about the activity of what’s actually happening in Alberta.”

Albertans can also expect legislation this spring aimed at further cutting red tape, something Dormuth welcomed, noting it affects all sectors of the economy.

“Alberta’s government was elected on a commitment to reduce by one-third the number of job-killing government rules imposed on our economy,” said Kenney, adding they had already achieved a 22 per cent reduction.

There will also be a bill tabled to promote innovation in the financial services sector by allowing companies to test new products and services. The bill will also make it easier to establish a reinsurer in Alberta, helping to reduce costs and spur growth in the financial services sector.

jaldrich@postmedia.com

Twitter: @JoshAldrich03

Adblock test (Why?)

Source link

Economy

Trump’s victory sparks concerns over ripple effect on Canadian economy

Published

8 hours ago

November 6, 2024

Anne Joseph

As Canadians wake up to news that Donald Trump will return to the White House, the president-elect’s protectionist stance is casting a spotlight on what effect his second term will have on Canada-U.S. economic ties.

Some Canadian business leaders have expressed worry over Trump’s promise to introduce a universal 10 per cent tariff on all American imports.

A Canadian Chamber of Commerce report released last month suggested those tariffs would shrink the Canadian economy, resulting in around $30 billion per year in economic costs.

More than 77 per cent of Canadian exports go to the U.S.

Canada’s manufacturing sector faces the biggest risk should Trump push forward on imposing broad tariffs, said Canadian Manufacturers and Exporters president and CEO Dennis Darby. He said the sector is the “most trade-exposed” within Canada.

“It’s in the U.S.’s best interest, it’s in our best interest, but most importantly for consumers across North America, that we’re able to trade goods, materials, ingredients, as we have under the trade agreements,” Darby said in an interview.

“It’s a more complex or complicated outcome than it would have been with the Democrats, but we’ve had to deal with this before and we’re going to do our best to deal with it again.”

American economists have also warned Trump’s plan could cause inflation and possibly a recession, which could have ripple effects in Canada.

It’s consumers who will ultimately feel the burden of any inflationary effect caused by broad tariffs, said Darby.

“A tariff tends to raise costs, and it ultimately raises prices, so that’s something that we have to be prepared for,” he said.

“It could tilt production mandates. A tariff makes goods more expensive, but on the same token, it also will make inputs for the U.S. more expensive.”

A report last month by TD economist Marc Ercolao said research shows a full-scale implementation of Trump’s tariff plan could lead to a near-five per cent reduction in Canadian export volumes to the U.S. by early-2027, relative to current baseline forecasts.

Retaliation by Canada would also increase costs for domestic producers, and push import volumes lower in the process.

“Slowing import activity mitigates some of the negative net trade impact on total GDP enough to avoid a technical recession, but still produces a period of extended stagnation through 2025 and 2026,” Ercolao said.

Since the Canada-United States-Mexico Agreement came into effect in 2020, trade between Canada and the U.S. has surged by 46 per cent, according to the Toronto Region Board of Trade.

With that deal is up for review in 2026, Canadian Chamber of Commerce president and CEO Candace Laing said the Canadian government “must collaborate effectively with the Trump administration to preserve and strengthen our bilateral economic partnership.”

“With an impressive $3.6 billion in daily trade, Canada and the United States are each other’s closest international partners. The secure and efficient flow of goods and people across our border … remains essential for the economies of both countries,” she said in a statement.

“By resisting tariffs and trade barriers that will only raise prices and hurt consumers in both countries, Canada and the United States can strengthen resilient cross-border supply chains that enhance our shared economic security.”

This report by The Canadian Press was first published Nov. 6, 2024.

Source link

Economy

September merchandise trade deficit narrows to $1.3 billion: Statistics Canada

Published

1 day ago

November 5, 2024

Anne Joseph

OTTAWA – Statistics Canada says the country’s merchandise trade deficit narrowed to $1.3 billion in September as imports fell more than exports.

The result compared with a revised deficit of $1.5 billion for August. The initial estimate for August released last month had shown a deficit of $1.1 billion.

Statistics Canada says the results for September came as total exports edged down 0.1 per cent to $63.9 billion.

Exports of metal and non-metallic mineral products fell 5.4 per cent as exports of unwrought gold, silver, and platinum group metals, and their alloys, decreased 15.4 per cent. Exports of energy products dropped 2.6 per cent as lower prices weighed on crude oil exports.

Meanwhile, imports for September fell 0.4 per cent to $65.1 billion as imports of metal and non-metallic mineral products dropped 12.7 per cent.

In volume terms, total exports rose 1.4 per cent in September while total imports were essentially unchanged in September.

This report by The Canadian Press was first published Nov. 5, 2024.

Source link