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Algoma U makes 'significant impact' to economy: Study – Sault Star

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Shingwauk Hall at Algoma University in Sault Ste. Marie, Ont., on Thursday, Jan. 23, 2020. (BRIAN KELLY/THE SAULT STAR/POSTMEDIA NETWORK)

Algoma University’s $80-million impact on Sault Ste. Marie’s economy supports 1,000-plus jobs and is expected to grow as the post-secondary institution welcomes more students and its graduates contribute knowledge learned to their employers.

An economic impact study done by Emsi, a labour market analytics firm based in Idaho, is based on 2017-2018 data when Algoma’s enrolment stood at 1,362. Total student numbers at sites in the Sault, Brampton and Timmins are 2,032 full-time equivalents in January as the university works towards its goal of 3,000 FTE by 2024.

Alumni impact, at $56.8 million or 71 per cent, is the greatest contributor to Algoma’s impact to the city, Emsi found. Educated residents earn more money. Their contributions make their employers more efficient, said economist Susan Hackett.

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This is an impact that will grow with Algoma,” she said during her presentation to Algoma’s board of governors last Thursday.

The impact of operations spending, at $20.9 million, was the second largest contributor to Algoma’s impact on the Sault’s economy.

Payroll for 2017-2018, not including research employees, totaled $16.7 million. The university spent $12.5 million on day-to-day expenses during the year.

Student spending contributed $1.6 million in added income to the economy.

Research spending, at $563,400, and visitor spending, $344,300, rounded out Algoma’s impact.

Algoma contributes 2.7 per cent of the city’s total gross regional product. The university supports more than 1,100 jobs.

That’s a significant impact to be making,” said Hackett. “There’s entire industries that don’t make an economic impact as large as that. It’s showing that people are affected by Algoma whether they directly attend it, or work there, or not. You really have a wide-reaching economic impact locally. That impact spans across a lot of different industry sectors.”

Esmi’s “very rigorous” methodology results in conservative findings, she told governors.

Economic impact studies tend to have a bad reputation because they can really easily overinflate numbers,” said Hackett. “It’s very hard to take them seriously whey they do that. We try to be as conservative as possible.”

No references to the impact of Indigenous students on Algoma disappointed governor Jessica Belisle. 

I think that was a lost opportunity,” she said.

Emsi wanted to include data related to First Nation students, but none was available, said Hackett.

The study is a first for the university, director of strategic advancement Colin Wilson told governors.

We were looking at quantifying the performance of the institution,” he said. “There weren’t a lot of metrics that we could use to demonstrate to the community what we were providing.”

Emsi adapted its economic impact model for American colleges for Canadian post-secondary institutions in 2000. Emsi has done studies for more than half of the colleges and universities in Canada.

It’s really important for municipal leaders, provincial leaders and federal leaders to see what the return is for the investment,” said Wilson. “When you look at these numbers you really see what Algoma brings to the community and it truly is impressive.”

The university credits another economic impact study done by Emsi for helping the post-secondary institution get $7.3 million in support from the City of Brampton last June. The cash, over three years, will help Algoma boost its facilities and programming at its campus in the southern Ontario city of 600,000. The university is dedicating $27 million to the project.

We could show the economic impact over time,” president Asima Vezina told governors. “It’s a big reason why we were successful in that proposal.”

Wilson will use the Emsi data in “a number of (funding) proposals” seeking funding “so people really understand what the impact is if we get that proposal through,” said Vezina.

She expects the university will update the economic impact study in three to four years.

This is stuff that we should keep current,” said Vezina.

The study was estimated to cost $50,000 to $55,000 when brought forward to the board of governors last March.

btkelly@postmedia.com

On Twitter: @Saultreporter

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UK's Economy To Dip Into Recession This Winter – OilPrice.com

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UK’s Economy To Dip Into Recession This Winter | OilPrice.com

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Recession

The UK’s recession will officially begin this winter and is likely to last for most of next year, a closely watched survey out today suggests.

S&P Global and the Chartered Institute of Procurement and Supply’s (CIPS) final purchasing managers’ index (PMI) measuring private sector activity in November was unchanged at 48.2, the lowest number since January 2021 when the UK was in the constrained by tough pandemic lockdowns.

The reading was below analysts’ expectations but held steady from an earlier estimate. The services PMI was unchanged at 48.8. Services firms generate about two thirds of UK GDP.

The figure prompted experts to predict the forewarned recession will start during the final weeks of this year. 

A recession is typically defined as two consecutive quarters of contraction. The UK economy shrank 0.2 percent over the summer.

PMI has slid this year

Source: S&P Global

Britain’s PMI has now been below the 50 point threshold that separates growth and contraction for four months now, indicating consumers and businesses started cutting spending during the summer when the cost of living crisis gathered pace.

Chris Williamson, chief business economist at S&P Global Market Intelligence, said Britain is now in the teeth of the worst economic slowdown outside the Covid-19 pandemic since the financial crisis in 2008.

The economy is being spiked by the worst inflation crunch in 41 years, with prices rising 11.1 percent over the year to October.

Pay is failing to keep pace with inflation, putting households on track for the biggest living standards shock on record. The Office for Budget Responsibility reckons real incomes will fall 7.1 percent over the next two years.

That living standards squeeze is expected to drive a spending slowdown, keeping the UK in recession for at least a year. However, experts think the amount of GDP lost during the slump will be small compared to past recessions.

Businesses are being squeezed by soaring energy costs, forcing them to scale back unprofitable activity.

Gabriella Dickens, senior UK economist at consultancy Pantheon Macroeconomics, thinks businesses will have to shed workers to offset weaker spending.

“Firms will move decisively to reduce employment next year, as they are forced to consolidate costs in the face of higher financing costs and weaker demand,” she said.

The pound slumped 0.34 percent against the US dollar on the news. The FTSE 100 climbed 0.24 percent.

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B.C.’s economy forecast to remain steady, despite slower near-term economic growth | BC Gov News – BC Gov News

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Like other jurisdictions, B.C. is expected to see slower economic growth through 2023 because of global inflation and higher interest rates, before steady growth resumes in the medium term, according to projections from private-sector forecasters.

Each year, B.C.’s finance minister meets with the Economic Forecast Council (EFC), a 13-member council of private-sector forecasters from throughout Canada, in preparation for the next year’s budget. This is the second year that an additional set of discussions was added, providing an opportunity to consult with an Environmental, Social and Governance (ESG) Advisory Council to explore how the provincial government can continue to build a more inclusive, sustainable economy and support well-being in British Columbia.

The EFC anticipates the province’s economy will grow by 2.9% in 2022 and 0.4% in 2023; slower than their January 2022 forecasts of 4.2% and 2.7%, respectively. The updated figures are similar to what was presented in the Province’s Second Quarterly Report. Real gross domestic product (GDP) growth is then expected to pick up, with an increase of 1.6% in 2024, followed by gains of 2.3%, 2.3% and 2.1% in 2025, 2026 and 2027, respectively. The reduction in the near-term outlook is consistent with other jurisdictions and reflects persistent global inflation and interest rates rising higher and more rapidly than expected throughout Canada.

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“We’re entering this period of slower growth and challenging global economic times in a strong position to continue supporting people, because B.C.’s economy grew more than most last year,” said Selina Robinson, Minister of Finance. “We’ll use the resources we have to address the issues that matter most to people, including housing, health care and building a sustainable economy that works for everyone – but no matter what is on the horizon and no matter what the numbers show, this government will continue to be here to support people.”

Discussions with the EFC and the ESG Advisory Council focused on current events, issues affecting B.C.’s economy and the environmental, social and governance opportunities and challenges facing the province. Topics at the meetings included:

  • global inflation and monetary policy impacts;
  • government policies to stimulate investment and ensure shared prosperity;
  • socioeconomic factors in B.C., such as inequality, Indigenous partnerships, and well-being;
  • environment, climate change and the transition to a lower carbon economy;
  • housing affordability and supply;
  • labour market dynamics and immigration; and
  • opportunities for businesses to build on B.C.’s strong ESG profile.

“We are committed to building an inclusive economy, where environmental and social sustainability is the basis for future growth,” said Robinson. “A strong social, cultural and economic foundation is key to successful and resilient communities. We know this, and we know generations will benefit from the decisions we make right now.”

Forecasts and feedback from the two councils will be used to inform the next provincial budget, which will be released on Feb. 28, 2023. EFC members will also have an opportunity to submit revised forecasts in early January.

Quick Facts:

  • In the Province’s Second Quarterly Report, B.C. projected a revised operating surplus of $5.7 billion in the 2022-23 fiscal year.
  • Since the summer, B.C. has rolled out approximately $2 billion in affordability measures.
  • Environmental, Social and Governance are three main categories often discussed when evaluating sustainability performance, risk-mitigation planning and societal well-being.

Learn More:

To read B.C.’s Second Quarterly Report, visit: https://www2.gov.bc.ca/gov/content/governments/finances/reports/quarterly-reports

For information about new and existing support measures for B.C. residents, visit: https://strongerbc.gov.bc.ca/cost-of-living/

For more about the StrongerBC Economic Plan, visit: https://strongerbc.gov.bc.ca/plan/

To learn about the ways B.C. is committed to environmental, social and governance principles, read the ESG summary report here: https://www2.gov.bc.ca/assets/gov/british-columbians-our-governments/government-finances/debt-management/bc-esg-report.pdf

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A Look At Canada’s Growing Economy

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Canada has one of the largest economies in the world, and the country’s largest industries include real estate, oil, and gas extraction, manufacturing, and mining. By GDP, Canada has the ninth-largest economy in the world. In 2020, Canada’s annual GDP was $1.64 trillion, and roughly one-third of GDP comes from Canada’s import and export of goods and services.

The Canada Special

Canada is home to many big-name brands. E-commerce giant Shopify is headquartered in the country, and central banks like the Royal Bank of Canada (RBC) operate within the country’s financial sector. RBC is regarded as one of the largest banks in Canada and the world. We recently saw HSBC Group agree to sell HSBC Canada to RBC. According to the CEO of HSBC Group, the company considered HSBC Canada’s strategic fit and ultimately found an upside in selling the business. RBC is reportedly buying HSBC Canada for $13.5 billion, which is expected to close in late 2023.

 

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Growing Canadian Markets

Canada’s economy is constantly growing, too. RBC’s acquisition of HSBC Canada demonstrates this, but many other industries have taken off in the country over the years. One of the fastest-growing industries in 2022 is iGaming. iGaming refers to any online betting, such as online casino games and sports betting. This growth reflects a worldwide trend, where the global iGaming market is projected to grow to $114 billion by 2028.

In particular, Ontario’s iGaming market is leading the way in Canada. Total iGaming revenue in the second quarter of 2022 in Ontario’s iGaming market reached $267 million, up from the $162 million recorded in the first quarter of 2022. Likewise, total wagers, active player accounts, and average monthly spend per active player account increased in Q2 2022 in Ontario. Total bets entered the billions, jumping from $4,076 million to $6.04 billion in the second quarter.

Several operators and websites specializing in different areas of iGaming are live in Canada, helping the Canadian market reach a broader target audience. According to this review site, some of Canada’s most popular online casinos include LeoVegas, which specializes in mobile gaming, and Wildz. Wildz is an online casino known for offering lucrative casino bonuses. Canada’s iGaming market also offers French-speaking online casinos for Canadian players who want to speak French. This is particularly relevant in Quebec, a French-speaking province.

Interestingly, Canada’s iGaming market is rising simultaneously with the country’s eSports industry. In 2022, revenue in Canada’s eSports market is expected to reach nearly $25 million. This growth is attractive because eSports is a sector that the iGaming market is looking more into incorporating. People have shown that they enjoy placing wagers on eSports tournaments as they do with regular sports tournaments like the World Cup.

Canada has one of the largest economies in the world, so it’s no surprise to see the country continuing to push boundaries and grow its success in budding new industries like iGaming and eSports. Even though these are two competitive markets, Canada appears to have gotten its foot in the door already.

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