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Kenney unveils $10B plan to rebuild economy, create 50K jobs – CTV News

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CALGARY —
The provincial government will invest $10 billion in infrastructure projects help rebuild the economy, creating 50,000 jobs in the process, Premier Jason Kenney announced Monday.

The business tax rate will also be lowered from 10 per cent to eight per cent on July 1.

Alberta is faced with what Kenney called a triple threat — the health crisis, oil price collapse and five years of tough economic times. As part of the initiative, the province will launch a series of “large-scale infrastructure projects” this summer at a cost of $612 million, creating 2,500 jobs.

“These strategic projects will be spread across every region of the province, and will include the twinning of highways, projects that support growth in the agricultural sector, gas line extensions for northern residents, treatment facilities for Albertans recovering from addictions, and other important projects,” the province said in a release. 

“The projects announced today will be followed by more projects announced in the coming months that will drive economic expansion and provide a legacy that will benefit our province for decades to come.”

A previous version of this story appears below:

Premier Jason Kenney is set to announce the first part of a major economic recovery strategy on Monday.

“It will be a bold and ambitious plan,” he said during his Thursday briefing.

“By an order of magnitude, the most ambitious economic recovery plan offered by any Canadian province at least to date.”

Light on details, the premier did hint steps towards helping diversify Alberta’s economy while not fading support for the energy sector.

“We will be announcing the outlines of an exciting new program to incentivize job creation investment in the information technology digital information sector.”

The Explorers and Producers Association of Calgary told CTV News that it hopes the announcement addresses many industries.

“I hope its focused broadly we certainly want to see other sectors do well and we rely on them as we move forward,” said EPAC President Tristan Goodman.

He said the industry is also hoping the province will address regulation processes, market access projects including pipelines, and encourage investor confidence in Alberta.

“Investors need to see that they have stability and certainty so I think there’s a couple of components there, the province actually could step into that space around financial liquidity.”

Liquid capital is exactly what Calgary-based Pine Cliff Energy is hoping for.

“I think anything the government can do to help us from allowing us to obtain some short-term financing,” said Phil Hodge, president and CEO.

Political watchers say they are keen to see how the varying sectors are allocated support.

“(Investment in) what industries? Is it going to just be throwing more money at oil and gas at a time where its depressed or is it going to be looking at small businesses (which are) the heartbeat of Alberta’s economy?” Asked Zain Velji, campaign strategist.

The announcement is expected Monday in Calgary.

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Indian economy's medium-term outlook remains uncertain – RBI Governor – The Guardian

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By Swati Bhat and Aftab Ahmed

NEW DELHI (Reuters) – The medium-term outlook for the Indian economy remains uncertain with supply chains and demand yet to be restored fully while the trajectory of the coronavirus spread and the length of its impact remain unknown, Reserve Bank of India Governor Shaktikanta Das said on Saturday.

According to most estimates, the Indian economy will register a record contraction of over 4.5% in the current fiscal year that started on April 1 due to the pandemic.

Starting late March, the country was placed under one of the strictest lockdowns in the world for over two months. Since early June, the government has started easing restrictions to help some revival in the economy even though the number of infections in the country continues to rise.

“The Indian economy has started showing signs of getting back to normalcy in response to the staggered easing of restrictions,” Das said in an address to an online forum.

“It is, however, still uncertain when supply chains will be restored fully. How long will it take for demand conditions to normalise and what kind of durable effects will the pandemic leave behind on our potential growth?” he said.

Das said that the 2008 global crisis and the current crisis show that such economic shocks have “fatter tails” than generally believed, and that the country’s financial system should have larger capital buffers.

A recapitalisation plan for Indian banks is necessary as the economic impact of the pandemic may result in higher bad loans and erosion of capital for banks, the RBI governor added.

The central bank has cut policy rates by 115 basis points in response to the pandemic, resulting in a total policy rate reduction of 250 basis points since February 2019, along with providing liquidity of 9.57 trillion rupees ($127.28 billion).

It has also eased some bad loan provisioning norms and allowed loan moratoriums for retail customers.

Das said that the central bank has to carefully unwind the unusual monetary and regulatory measures taken to cushion the economic shocks in the post pandemic world, as the financial sector should return to normal functioning without relying on the regulatory relaxations as the new norm.

India recorded 27,114 coronavirus cases in the last 24 hours, taking the total to 820,915 including 22,123 dead.

The RBI governor also said that inflation will continue to moderate going forward and investment activity will revive.

(Reporting by Swati Bhat and Aftab Ahmed; Editing by Raju Gopalakrishnan)

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NWT says its economy is weathering Covid-19 better than others – Cabin Radio

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Published: July 10, 2020 at 4:27pmJuly 10, 2020


The NWT’s economy will come out of Covid-19’s initial months damaged but in better shape than other parts of Canada, the territory said on Friday.

The territorial government is forecasting a 3.3-percent contraction in its economy this year, which it says is “significantly less than the national average of 8.2 percent forecast by the Conference Board of Canada,” an economic think-tank.

Despite steep declines in the tourism and transportation industries, the territory said “steps taken to keep the diamond mines and the public sector active” had softened the pandemic’s blow.

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Mining and government are by far the territory’s largest employers. The Ekati mine has suspended activities but the Gahcho Kué and Diavik mines remain fully operational.

The private sector is in worse shape. A GNWT-commissioned survey of businesses showed that 81 percent of NWT companies had experienced a “significant decrease” in revenues.

Tourism and transportation industries were the hardest-hit, telling the government they saw revenues drop by an average of 71 percent.

On the other hand, more than 90 percent of businesses surveyed by the territory in April and May reported they expected to make it through the pandemic.

Consumer spending and small business spending has rebounded since May, the territory said, and 71 percent of NWT residents surveyed were planning to travel within the territory in the next six months.

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The Department of Industry, Tourism, and Investment said the results of third survey – carried out in June to examine the impact on consumer demand – is coming soon.

According to the territory, the various surveys are “part of … ongoing work to better understand the effects of Covid-19 on the NWT and how best to respond to them.”

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Saskatchewan economy adds 30,000 jobs in June as businesses open up again: Statistics Canada – CBC.ca

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Saskatchewan added more than 30,000 new jobs in June as businesses began to open back up from the COVID-19 pandemic.

Saskatchewan’s unemployment rate dipped to 11.6 per cent in June from a high in May of 12.5 per cent, according to a Statistics Canada report on Friday. 

At the national level Canada added almost one million jobs in June.

The national jobless rate fell to 12.3 per cent, down from the record-high of 13.7 in May. There are still 1.8 million fewer jobs in Canada today than there were in February.

Jason Childs, an associate professor of economics at the U of  R, said he was pleasantly surprised by the employment gains.

“To be gaining 30,000 jobs provincially and nearly a million jobs nationally is some unexpected good news, which is nice for a change,” he said.

Employment is rebounding as more businesses open up across Canada. (Statistics Canada, Labour Force Survey)

The growth in Saskatchewan was split between 22,000 full-time jobs and 10,000 part-time jobs.

Childs cautioned that the jobless rate in the province is still more than six per cent higher than it was at this time last year, when it was 5.2 per cent, and there still about 40,0000 fewer jobs than before the pandemic.

“[Some people] don’t appreciate how deep the hole we’re in is and this is not a hole we’re going to get out of quickly,” Childs said. “[Unemployment] has more than doubled from this time last year.”

All those job losses have not been evenly distributed throughout the population.

Young workers are taking the brunt of the job losses in the province.

One in five people 15 to 24 years old are without a job, compared to 8.6 per cent of workers over the age of 25.

University of Regina associate professor of Economics Jason Childs says we have a long way to go to get back to pre-pandemic economic levels. (CBC)

Unemployment among First Nations is 18.4 per cent and the Métis jobless rate is 17.3 per cent.

Childs said both those groups already have higher unemployment and they will have a harder time getting back in the workforce.

“People looking for that first job are going to have a really tough time right now because anything that opens up you’re probably going to be competing with somebody who’s got a lot more experience,” he said.

The one sector hit hardest by the pandemic is food and accommodation, where an estimated 400,000 workers across the country are still without a job.

Employment increased in all provinces in June, but it remains below February levels. (Statistics Canada, Labour Force Survey)

Childs said those jobs are dependent on consumer spending and tourism, and that people’s financial habits have changed during the pandemic.

“I still think we’re going to see a drag [on the economy] as we get what’s called the Paradox of Thrift,” Childs said.

“As people begin to save for their own protection we may see that drag on economic activity as consumption falls off.”

He said people are beginning to cut back on ‘luxuries’ like going out to eat or grabbing a cup of coffee.

“That’s a place where you can cut back fairly easy,” he said.

“People are dealing with a massive amount of uncertainty right now and uncertainty breeds caution and doesn’t breed spending.”

Childs said no amount of fiscal stimulus is going to solve this crisis without consumer confidence.

“You need to get people back to a place where they feel comfortable and safe spending in order to return to the previous level of economic activity,” he said. “Or we’re just gonna have to get used to this.”

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