While the economy won’t be “roaring back,” as promised early in the COVID-19 pandemic by the federal finance minister, suspending the federal vaccination mandates on Monday will help it on its way, an economics professor at Queen’s University said.
“The faster we can get back to a more fluid economic system, in particular allowing people to get back into the workforce, and increasing the fluidity of trade across borders and the flow of people, that’s going help with getting the economy back to speed so that then we can counteract those rising prices,” Huw Lloyd-Ellis said.
“We’re basically having to make up for (total hours lost) now and this is in every sector. Not just in terms of producing manufactured goods, although that’s a big part of it, but also tourism (and) all those sectors where there was a big loss in the last two years that work, which you know we were having to catch up for, otherwise prices get pushed up.”
As of Monday, vaccination requirements will be suspended for federal government workers, federally regulated transportation sector workers, as well as for domestic and outbound travel.
Attracting more tourists to the region is something Kingston businesses, especially downtown, are relying on.
“A lot of these mandates being lifted have to do with people travelling internationally out of Canada, but, of course, people who are coming to Canada have to go back, so it affects them to the extent that they will be more likely to come to Canada as a result of this relaxation. It’s going to help local businesses,” Lloyd-Ellis said.
Karen Cross, CEO of the Greater Kingston Chamber of Commerce, said on Thursday that the lifting of restrictions comes at a perfect time.
“Our tourist season is just ramping up — it’s great timing,” Cross said. “We’ll be able to see more travellers now with mandates lifted, so that’s great news. I think there’s going to be some hesitance with the ArriveCAN App, so we’re still working through our government channels to try to get that eliminated as well, to take away that one more barrier to the folks visiting us here.”
Those who wish to enter Canada must have the free ArriveCAN app downloaded to their phone to declare their vaccination status. Numerous border cities are protesting the app, noting it is inconsistent with this week’s announcement.
“Looking at the ArriveCAN app, we know that from a border city perspective, it is a barrier to cross the border,” Windsor Mayor Drew Dilkens told the Windsor Star. “It may seem like a real simple thing. I find it really easy to do, but I know that it’s a barrier for people who are trying to go to the casino, the wineries.
“It’s a barrier for those just looking to come across for dinner and get back to normal.”
Despite the ArriveCAN app, Cross said walking around downtown over the past weekend, she saw numerous licence plates from the United States, including Florida, Texas and California.
“There’s still a lot of motor coaches coming into town, too, so that’s another indication that those things are going to ramp up even more of our tourism industry as we come into the (tourist) season,” Cross said.
The Conference Board of Canada published an economic outlook for the Kingston metropolitan area in March of this year. It predicts the city is going to continue to take positive strides into recovery, “with real GDP forecast to expand by 4.3 per cent this year and 1.5 per cent in 2023.”
Almost exactly two years earlier, the board highlighted Kingston and four other cities’ economies that were at risk due to COVID-19’s impact on the accommodation and food services sector. This was because the cities’ employment in those fields made up more than 8.4 per cent of the total employment.
Aside from the tourism and hospitality industries, lifting the restrictions should also help the flow of goods and services, which should help with inflation.
“A lot of the rising prices, at the moment, are sort of driven by these constraints, and as we relax these constraints, hopefully that will reduce the impact that it has on overall inflation,” Lloyd-Ellis said. “This is not just a Kingston level, but a broader economic level.
“To the extent that inflation is not putting as much pressure on the economy, that will ease the requirement for the Bank of Canada to raise interest rates, which, again, has positive knock-on effects for the positive for the economy — the housing markets in particular.”
There is little economists can compare the pandemic to in terms of impact, but Lloyd-Ellis said many refer back to the 1970s when prices were increasing so rapidly due to the increased price of oil. Back then, it also took time for the economy to level out.
Considering 2020, when the global economy was shut down, Lloyd-Ellis said the country lost roughly seven per cent of output, and then a little less in 2021. He said the economy is now facing the consequences of depleting our supply inventories and the loss of goods and services that weren’t available during the height of the pandemic.
With files from Postmedia Network
FREDERICTON – New Brunswick‘s finance minister says the province recorded a surplus of $500.8 million for the fiscal year that ended in March.
Ernie Steeves says the amount — more than 10 times higher than the province’s original $40.3-million budget projection for the 2023-24 fiscal year — was largely the result of a strong economy and population growth.
The report of a big surplus comes as the province prepares for an election campaign, which will officially start on Thursday and end with a vote on Oct. 21.
Steeves says growth of the surplus was fed by revenue from the Harmonized Sales Tax and federal money, especially for health-care funding.
Progressive Conservative Premier Blaine Higgs has promised to reduce the HST by two percentage points to 13 per cent if the party is elected to govern next month.
Meanwhile, the province’s net debt, according to the audited consolidated financial statements, has dropped from $12.3 billion in 2022-23 to $11.8 billion in the most recent fiscal year.
Liberal critic René Legacy says having a stronger balance sheet does not eliminate issues in health care, housing and education.
This report by The Canadian Press was first published Sept. 16, 2024.
The Canadian Press. All rights reserved.
OTTAWA – Finance Minister Chrystia Freeland says the government is making some changes to mortgage rules to help more Canadians to purchase their first home.
She says the changes will come into force in December and better reflect the housing market.
The price cap for insured mortgages will be boosted for the first time since 2012, moving to $1.5 million from $1 million, to allow more people to qualify for a mortgage with less than a 20 per cent down payment.
The government will also expand its 30-year mortgage amortization to include first-time homebuyers buying any type of home, as well as anybody buying a newly built home.
On Aug. 1 eligibility for the 30-year amortization was changed to include first-time buyers purchasing a newly-built home.
Justice Minister Arif Virani is also releasing drafts for a bill of rights for renters as well as one for homebuyers, both of which the government promised five months ago.
Virani says the government intends to work with provinces to prevent practices like renovictions, where landowners evict tenants and make minimal renovations and then seek higher rents.
The government touts today’s announced measures as the “boldest mortgage reforms in decades,” and it comes after a year of criticism over high housing costs.
The Liberals have been slumping in the polls for months, including among younger adults who say not being able to afford a house is one of their key concerns.
This report by The Canadian Press was first published Sept. 16, 2024.
The Canadian Press. All rights reserved.
OTTAWA – Statistics Canada says manufacturing sales rose 1.4 per cent to $71 billion in July, helped by higher sales in the petroleum and coal and chemical product subsectors.
The increase followed a 1.7 per cent decrease in June.
The agency says sales in the petroleum and coal product subsector gained 6.7 per cent to total $8.6 billion in July as most refineries sold more, helped by higher prices and demand.
Chemical product sales rose 5.3 per cent to $5.6 billion in July, boosted by increased sales of pharmaceutical and medicine products.
Sales of wood products fell 4.8 per cent for the month to $2.9 billion, the lowest level since May 2023.
In constant dollar terms, overall manufacturing sales rose 0.9 per cent in July.
This report by The Canadian Press was first published Sept. 16, 2024.
The Canadian Press. All rights reserved.
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