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Feds to reveal state of Canada's COVID-affected economy, release fiscal 'snapshot' on July 8 – Prince Rupert Northern View

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The federal government will release a fiscal update on July 8, Prime Minister Justin Trudeau said during his daily update at Rideau Cottage Wednesday (June 17).

Trudeau said the update would give Canadians a sense of “where we are now,” as well as how the country compares to the rest of the world.

Wednesday’s announcement was an about-turn for Trudeau, who had in prior weeks said a fiscal update would be unrealistic amid a pandemic.

He said his government has provided updates to the finance committee every two weeks.

The update that is promised for July 8 will not be a full economic update, the prime minister noted, but “more of a snapshot of where we are right now.”

Trudeau said the update would only include predictions for the coming months, not years as is typical of fiscal or economic updates.

“I think it will be useful for people to see the scale and impact of everything we’ve put out,” Trudeau said.

“It would be unrealistic to project further than a few months.”

READ MORE: CERB to be extended by eight weeks amid gradual post-COVID reopening


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BoE to step up QE if economy slows again, deputy governor says – The Times – TheChronicleHerald.ca

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(Reuters) – The Bank of England will step up on quantitative easing (QE) if the British economy slows and struggles again, Deputy Governor Dave Ramsden said in an interview published on Tuesday, adding to his previous comments that BoE has more headroom to act.

QE would accelerate if “we saw signs of (market) dysfunction,” Ramsden told The Times newspaper in an interview https://bit.ly/2DFcMlr.

“I’m confident we’ve still got significant headroom to do more QE if we saw a much weaker recovery,” Ramsen said, adding that the central bank was prepared to do more quantitative easing, beyond the 745 billion pounds ($975.58 billion) committed.

He added that he was “confident” there would be no further quarters of negative growth for UK’s economy.

“A key outcome is what happens to the labour market. Some companies are going to go under. Some jobs are going to be lost,” Ramsen said.

Last week, Britain’s central bank said it saw no immediate case to cut interest rates below zero as it warned the economy would take longer to recover from the COVID-19 slump than it previously forecast.

Unemployment is likely to almost double by the end of this year, the Bank of England said on Thursday.

The BoE cut interest rates to just 0.1% in March and expanded its bond-buying plan to almost $1 trillion.

On Thursday, its nine monetary policymakers all voted for ‘no policy changes’ as they sketched out a slow path to recovery.

(Reporting by Kanishka Singh in Bengaluru, Editing by Sherry Jacob-Phillips)

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BoE to step up QE if economy slows again, deputy governor says – The Times – The Journal Pioneer

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(Reuters) – The Bank of England will step up on quantitative easing (QE) if the British economy slows and struggles again, Deputy Governor Dave Ramsden said in an interview published on Tuesday, adding to his previous comments that BoE has more headroom to act.

QE would accelerate if “we saw signs of (market) dysfunction,” Ramsden told The Times newspaper in an interview https://bit.ly/2DFcMlr.

“I’m confident we’ve still got significant headroom to do more QE if we saw a much weaker recovery,” Ramsen said, adding that the central bank was prepared to do more quantitative easing, beyond the 745 billion pounds ($975.58 billion) committed.

He added that he was “confident” there would be no further quarters of negative growth for UK’s economy.

“A key outcome is what happens to the labour market. Some companies are going to go under. Some jobs are going to be lost,” Ramsen said.

Last week, Britain’s central bank said it saw no immediate case to cut interest rates below zero as it warned the economy would take longer to recover from the COVID-19 slump than it previously forecast.

Unemployment is likely to almost double by the end of this year, the Bank of England said on Thursday.

The BoE cut interest rates to just 0.1% in March and expanded its bond-buying plan to almost $1 trillion.

On Thursday, its nine monetary policymakers all voted for ‘no policy changes’ as they sketched out a slow path to recovery.

(Reporting by Kanishka Singh in Bengaluru, Editing by Sherry Jacob-Phillips)

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Singapore’s Economy Posts Worse Contraction in Second Quarter – Yahoo Canada Finance

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Singapore Posts Bigger GDP Contraction in Second Quarter

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(Bloomberg) — Singapore’s economy had a bigger contraction in the second quarter than previously estimated, signaling a long recovery ahead for the trade-reliant nation.

Gross domestic product plunged an annualized 42.9% in the second quarter from the previous three months, according to final estimates from the Ministry of Trade and Industry released Tuesday. That was worse than a previous estimate of a 41.2% contraction and compares with a forecast of -43% in a Bloomberg survey of economists.

The economy, which is already in a technical recession, is set to shrink 5% to 7% in 2020, compared with a previous official forecast of a 4% to 7% contraction, the ministry said. On a year-on-year basis, the economy shrank 13.2% in the second quarter, compared with an earlier estimate of -12.6%.

“The outlook for the Singapore economy has weakened slightly since May,” according to the MTI statement. “The subdued external economic environment will continue to pose a drag on several of Singapore’s outward-oriented sectors,” while the reopening of borders is likely to be slower than previously anticipated, it said.

The lockdown has pummeled retail and tourism businesses and crippled construction output, while exports have slumped because of weak global demand. Even though the economy has gradually reopened and the government has pumped in stimulus measures worth more than 19% of GDP, the recovery remains uncertain and companies are bracing for further job cuts.

The data showed sharp contractions in key industries:

Manufacturing declined an annualized 31.7% in the second quarter from the previous three monthsConstruction plunged 97.1%Services contracted 37.4%

Singapore’s dollar was little changed at S$1.3746 against the U.S. dollar after the report.

The MTI said sectors reliant on foreign workers residing in dormitories will be slow to resume activity as the process to clear them for work has taken longer than expected. Most of Singapore’s virus infections have been among migrant workers living in those dormitories, several of which have been quarantined.

In a separate report, Enterprise Singapore revised its forecast for non-oil domestic exports upwards, projecting growth of 3% to 5% compared with a decline previously. Exports performed better than expected in the second quarter, due to sector-specific trends, the agency said. Non-monetary gold and pharmaceuticals, as well as electronic exports, grew in the quarter.

Singapore’s release follows reports last week that showed uneven economic performance across the region. Indonesia’s economy contracted in the second quarter for the first time in more than two decades, while the Philippines suffered its deepest plunge on record. At the same time, Chinese exports unexpectedly jumped in July amid a rekindling in global demand.

(Updates with comments from MTI statement starting in fourth paragraph.)

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