Economy

Warren Buffett optimistic about US economy

Published

4 years ago

May 2, 2020

Billionaire Warren Buffett on Saturday expressed optimism that the U.S. economy will be able to recover from the turmoil caused by the coronavirus pandemic.

“Nothing can basically stop America,” Buffett, chairman and CEO of Berkshire Hathaway, said at the company’s virtual shareholder meeting. “The American miracle, the American magic has always prevailed and it will do so again.”

He added: “In World War II, I was convinced of this,” he said. “I was convinced of this during the Cuban Missile Crisis, 9/11, the financial crisis.”

Although some states are beginning to reopen parts of the economy, many of the country’s industries and small businesses are still in dire straits.

In the past six weeks, over 30 million Americans have filed for unemployment and the number is only expected to rise in the coming weeks. Before the onset of the pandemic, the U.S.’s unemployment rate was roughly 3.5 percent. Economists have estimated that it’s now hovering around 20 percent.

The economic fallout was also reflected in the country’s GDP, which fell 4.8 percent in the first quarter, the largest contraction since the financial crisis.

“In 2008 and 2009 our economic train went off the tracks, and there were some reasons why the roadbed was weak in terms of the banks,” Buffett noted.

“This time we just pulled the train off the tracks and put it on a siding. And I don’t really know of any parallel — in terms of a very, very well the most important country in the world, most productive, huge population — in effect sidelining its economy and its workforce.”

Congress as well as the Trump administration have gone to great lengths to mitigate the economic fallout of the pandemic. Last month, Trump signed a fourth coronavirus relief package that upped funding for the Paycheck Protection Program, among other funding. Both branches of government are eyeing a fifth package that Democrats and other lawmakers hope will provide some relief to ailing state budgets.

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Economy

PBO projects deficit exceeded Liberals’ $40B pledge, economy to rebound in 2025

Published

16 hours ago

October 17, 2024

Anne Joseph

OTTAWA – The parliamentary budget officer says the federal government likely failed to keep its deficit below its promised $40 billion cap in the last fiscal year.

However the PBO also projects in its latest economic and fiscal outlook today that weak economic growth this year will begin to rebound in 2025.

The budget watchdog estimates in its report that the federal government posted a $46.8 billion deficit for the 2023-24 fiscal year.

Finance Minister Chrystia Freeland pledged a year ago to keep the deficit capped at $40 billion and in her spring budget said the deficit for 2023-24 stayed in line with that promise.

The final tally of the last year’s deficit will be confirmed when the government publishes its annual public accounts report this fall.

The PBO says economic growth will remain tepid this year but will rebound in 2025 as the Bank of Canada’s interest rate cuts stimulate spending and business investment.

This report by The Canadian Press was first published Oct. 17, 2024.

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Economy

Statistics Canada says levels of food insecurity rose in 2022

Published

2 days ago

October 16, 2024

Anne Joseph

OTTAWA – Statistics Canada says the level of food insecurity increased in 2022 as inflation hit peak levels.

In a report using data from the Canadian community health survey, the agency says 15.6 per cent of households experienced some level of food insecurity in 2022 after being relatively stable from 2017 to 2021.

The reading was up from 9.6 per cent in 2017 and 11.6 per cent in 2018.

Statistics Canada says the prevalence of household food insecurity was slightly lower and stable during the pandemic years as it fell to 8.5 per cent in the fall of 2020 and 9.1 per cent in 2021.

In addition to an increase in the prevalence of food insecurity in 2022, the agency says there was an increase in the severity as more households reported moderate or severe food insecurity.

It also noted an increase in the number of Canadians living in moderately or severely food insecure households was also seen in the Canadian income survey data collected in the first half of 2023.

This report by The Canadian Press was first published Oct 16, 2024.

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Economy

Statistics Canada says manufacturing sales fell 1.3% to $69.4B in August

Published

2 days ago

October 16, 2024

Anne Joseph

OTTAWA – Statistics Canada says manufacturing sales in August fell to their lowest level since January 2022 as sales in the primary metal and petroleum and coal product subsectors fell.

The agency says manufacturing sales fell 1.3 per cent to $69.4 billion in August, after rising 1.1 per cent in July.

The drop came as sales in the primary metal subsector dropped 6.4 per cent to $5.3 billion in August, on lower prices and lower volumes.

Sales in the petroleum and coal product subsector fell 3.7 per cent to $7.8 billion in August on lower prices.

Meanwhile, sales of aerospace products and parts rose 7.3 per cent to $2.7 billion in August and wood product sales increased 3.8 per cent to $3.1 billion.

Overall manufacturing sales in constant dollars fell 0.8 per cent in August.

This report by The Canadian Press was first published Oct. 16, 2024.

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