Economy

Slow economic growth is hurting Canadians

Published

1 year ago

July 11, 2023

The former chief economic analyst of Statistics Canada poses a dire warning to Canadians in an essay on our slow economic growth, produced for the fiscally conservative Fraser Institute.

Philip Cross says with Canada’s economic growth increasing at the slowest rate since the Great Depression, the Trudeau government risks doing irreparable societal harm by focusing on redistributing income, rather than economic growth.

“History shows that previous periods of economic stagnation or decline have unleashed social and political forces far worse than protectionism,” Cross writes, citing a warning by Austrian economist Friedrich Hayek, who grew up during the Great Depression that “the one thing modern democracy will not bear without cracking is … a substantial lowering of the standards of living in peace time, or even a prolonged (stagnation) of its economic conditions.

“Canada is in a full-blown economic growth crisis which is homegrown and due largely to poor government policy … rooted in declining business investment and stagnating growth in exports, two critical sectors of the economy.”

Cross cites a 2021 report by the Organization for Economic Co-operation and Development predicting “Canada’s per capita GDP growth between 2020 and 2060 will be the lowest among its 29 member nations.”

He says annual per-person GDP — a measurement of prosperity — grew by only 0.8% from 2013 to 2022 after adjusting for inflation, the worst showing since the 1930s when it was negative 0.3%.

Cross notes the government can’t blame the pandemic because Canada’s slow economic growth rate began before it started in early 2020.

From 2016 to 2022, economic growth in the U.S., adjusted for inflation, grew by 11.7% compared to just 2.8% in Canada.

The value of business investment in Canada at the end of 2022, adjusted for inflation, was 17.6% lower than in 2014, while the value of exports basically flatlined.

Rather than encouraging capitalism and competition, Cross says, the Trudeau government has pursued policies leading to “persistent budget deficits and chronic slow growth … low rates of business formation, regulatory uncertainty, barriers to investment (especially in the resources sector), restrictions on internal trade … and low levels of productivity and innovation.”

On the optimistic side, he says it’s not too late to turn things around, but only with a fundamental change in government policies.

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Economy

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

Published

12 hours ago

September 13, 2024

Anne Joseph

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)

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Economy

Statistics Canada reports wholesale sales higher in July

Published

19 hours ago

September 13, 2024

Anne Joseph

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.

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Economy

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

Published

2 days ago

September 12, 2024

Anne Joseph

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)

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