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Canada’s economy is more ‘fragile’ than the U.S.: Rosenberg

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8 months ago

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A prominent economist says the Canadian economy is weaker than many people realize, especially compared to the U.S. economy, which continues to benefit from fiscal stimulus.

David Rosenberg, founder and president of Rosenberg Research, told BNN Bloomberg that the Canadian economy is more “fragile” than the U.S. economy, adding that population growth has worked to make Canada’s economy appear to be performing better than it really is.

“You can mask an erosion in the economy through unprecedented immigration and population growth. But (regarding) real per capita income and output, the Canadian economy on that basis already is in a recession,” Rosenberg said.

U.S. stimulus

The main difference between the two countries’ economies, according to Rosenberg, is that the U.S. is benefiting from “monumental fiscal stimulus” stemming from the Chips Act, which was introduced in 2022 to enhance semiconductor manufacturing, research and development.

He said much of the economic growth in the U.S. last year came from fiscal stimulus. Gross domestic product in the U.S. grew by 2.5 per cent in 2023.

While the U.S. has a large and closed economy, Canada’s by contrast is small and open, according to Rosenberg. As a result, he said the Canadian economy is more impacted by international events which will have a “big impact on Canada because we’re three times more sensitive to the global economy than the U.S.”

Specifically, Rosenberg pointed to “flattening” economic data from the European Union and deflation in the Chinese economy.

 

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Economy

S&P/TSX composite gains almost 100 points, U.S. stock markets also higher

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2 days ago

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September 13, 2024

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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.

Companies in this story: (TSX:GSPTSE, TSX:CADUSD)

The Canadian Press. All rights reserved.

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Economy

Statistics Canada reports wholesale sales higher in July

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2 days ago

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September 13, 2024

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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.

The Canadian Press. All rights reserved.

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Economy

S&P/TSX composite up more than 150 points, U.S. stock markets mixed

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3 days ago

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September 12, 2024

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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.

Companies in this story: (TSX:GSPTSE, TSX:CADUSD)

The Canadian Press. All rights reserved.

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