The dean of Cape Breton University’s Shannon School of Business says the local economy should quickly rev up once public health restrictions really start to ease up.
George Karaphillis says if the past is any indication, the gross national product has shown it can recover, but he admits there hasn’t been a pandemic this severe for 100 years and no one really knows what will happen.
“History shows that the economy snaps back fast after an epidemic of this magnitude,” the dean said. “There is some pent-up demand from different sectors of the economy.”
Nova Scotia is nearing the end of the second month of public health restrictions that closed some businesses and forced others to close due to lack of customers.
If the economy does bounce back quickly, as most economists predict, then the province will have avoided a recession, which is defined as two successive quarters with a shrinking economy, Karaphillis said.
“The consensus is that it’s going to be a rapid rise in economic activity in about one month’s time, when the economy is actually fully operational and we’re back firing on all cylinders,” he said.
Many businesses in Nova Scotia were forced to temporarily shut down because of COVID-19. (David Laughlin/CBC)
There are positive signs for retail stores, but the growth of e-commerce and home delivery may have changed the game, Karaphillis said.
“The buying habits of consumers has changed, especially the new generation, the millennials, do not like to shop in the malls like the boomers.”
Cape Breton is heavily dependent on tourism, which will be hit hard for a year or more, but there is reason for optimism in commercial and retail operations, he said.
Two weeks ago, Brookfield Asset Management announced $5 billion in retail investments. The Toronto-based company is one of the largest owners of malls in the United States. That sends a strong signal that retail will not be left to struggle back to life, Karaphillis said.
The owner declined to comment, but a sign outside the building adjacent to the McDonald’s restaurant and Atlantic Superstore indicates it is being redeveloped for commercial and retail uses in two phases.
Karaphillis said with no vaccine for COVID-19, businesses will have to maintain physical distancing for the foreseeable future and that will hamper commerce to some degree.
A local developer is proposing to lease up to 33,000-square feet of retail space in a former call centre building on Kings Road in Sydney River. (Tom Ayers/CBC)
“COVID-19 has been a major disruption for the world economy and nobody really knows exactly how the world is going to behave after the COVID-19 and when we’re going to actually go back to normal,” he said.
However, the Membertou development in particular is good news because it’s already 75 per cent leased and the band’s other properties are fully leased, Karaphillis said.
“That’s a good indicator that another building, a commercial-size building, is going on now and it’s going to happen although we’re in the middle of this major disruption,” he said.
“This is a very positive sign for the local economy all by itself.”
A contractor started construction on a 55,000-square-foot, three-storey commercial building in Membertou just as public health restrictions due to COVID-19 shut down much of Nova Scotia. (Submitted by Membertou First Nation)
Hudson’s Bay recently announced plans to reopen its store in Sydney and the Mayflower Mall’s general manager, Greg Morrison, said some retailers will open inside the mall starting on Friday.
The mall is moving cautiously and will operate on reduced hours, though, he said.
“We’re really not sure at this time how many stores will open,” Morrison said on Tuesday.
“We’re not pressuring any stores to open. We’re going to just try to open and gauge and see how things work.”
Customers will be greeted at the door, given information on how to proceed and hand sanitizing stations will be available, said Morrison.
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.
