OTTAWA — The second-in-command at the Bank of Canada is warning that economic “scars” from the COVID-19 pandemic could become permanent without concerted effort from all Canadians.
The pandemic remains an important day-to-day concern for governments and policy-makers, but more discussion and preparation for the post-pandemic recovery needs to take place, said senior deputy governor Carolyn Wilkins, who is due to step down as of Dec. 9.
In a webcast speech to the Munk School of Global Affairs and Public Policy on Thursday, Wilkins said the economic recovery will likely be uneven and it must be recognized that some people and jobs will be left behind, despite positive outcomes such as the accelerated transition to digitization as a source of improved competitiveness.
“In our most recent projection, this adds up to a situation where Canada is likely to exit the pandemic with a lower profile for potential output,” she said.
“That means, in regular people terms, a significantly diminished ability to generate the goods and services and incomes on a sustainable basis and any of those scars could become permanent without deliberate actions from all of us.”
Rising numbers of COVID-19 cases across Canada are concerning and present a downside risk to the bank’s forecasts but positive news about early success in developing a vaccine help offset those concerns, she said.
Canadians should reject the idea that economic goals must come at the cost of social goals, Wilkins said, citing Quebec’s daycare system as an example of a policy that created a “virtuous circle” in which families were helped and more women joined the workforce.
Canada could also be made more resilient through policies that encourage equity rather than debt financing as a way to foster business creation and growth, she said.
Conventional wisdom is that the economy is a public sector problem, but private sector investment in growth-enhancing initiatives and smart incentives such as green technology are also important for longer term growth, Wilkins said.
“It’s not lost on me that I’m encouraging you and all of us to explore the far side of the moon when right now life still feels pretty difficult here now on earth,” she said.
“The COVID-19 pandemic remains a formidable obstacle to both our health and our economic prosperity and we can’t have one without the other. Governments are acting decisively and monetary policy is complementing these actions by creating the financial conditions that support growth.”
She said the pandemic has damaged the potential for Canada and other countries to generate sustainable economic activity and said sights need to be set higher to help businesses create good jobs and to make high debt loads more manageable.
Canada’s productivity and competitiveness issues remain, Wilkins said, arguing that the current crisis may present an opportune time to tackle those persistent problems.
She compared the time of recovery from the pandemic to the aftermath of major wars, with both events forcing governments and businesses to adapt and innovate at speeds they previously thought impossible.
This report by The Canadian Press was first published Nov. 12, 2020.
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.
