NP View on reopening the economy: Provinces must chart their own course - National Post | Canada News Media
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NP View on reopening the economy: Provinces must chart their own course – National Post

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After seven weeks of lockdown, Canadians finally have a glimmer of hope that life will soon transition to some semblance of normality. Numerous provinces have released their plans to reopen parts of their economies over the past week or so. But the amount of freedom Canadians will regain, and when, will be decidedly unequal — and that’s exactly the way it should be. In line with local conditions, provinces must chart their own path.

Last week, Saskatchewan became the first province to announce plans for a staged reopening of its economy. Starting Monday, previously restricted medical services — such as dentists, optometrists and chiropractors — will resume and Saskatchewanians will be allowed to engage in “low-risk” outdoor activities, such as fishing and boating. Neighbouring Alberta and Manitoba will allow non-emergency surgeries and other health services to reopen Monday, as well. Though in Manitoba, retailers, including hairdressers, and restaurants will also be allowed to open their doors, along with campgrounds, museums and libraries.

In Atlantic Canada, New Brunswick started loosening its restrictions on April 24, allowing outdoor activities such as golfing and fishing. It is also permitting universities to resume, and letting families interact with one other household. Likewise, Prince Edward Island began lifting some of its restrictions on May 1. And in Central Canada, Quebec, which has been hardest hit by this pandemic, announced the country’s most ambitious reopening plans. On May 11, elementary schools and daycare centres in much of the province will welcome back children. Starting Monday, many stores will be allowed to open and, over the next couple weeks, nearly half a million people will return to their jobs in retail, manufacturing and construction. Travel restrictions will also be relaxed. (Ontario released its plan, as well, though it lacks any specific dates, as the province watches for clearer indications that the epidemic is being brought under control.)


Saqib Shahab, Saskatchewan’s chief medical health officer, right, speaks while Premier Scott Moe looks on, at a COVID-19 news update in Regina on March 18. Saskatchewan has released its five-phase plan to reopen the province.

Michael Bell/The Canadian Press

Clearly, the “new normal” will look very different, and the recovery will move faster in some places than in others. But given that many of the provinces have had vastly different experiences so far, it makes sense.

Saskatchewan, with a population of around 1.2 million, has fared better than most, with fewer than 400 cases, 75 per cent of which have recovered. Quebec has nearly twice the population of British Columbia, but 13 times the number of cases. And Alberta is only slightly smaller than B.C., but has more than double the number of cases.

From the beginning of this crisis, Canada, like many other countries, has come under criticism for its piecemeal response to the pandemic. Countries with unitary systems of government, like New Zealand, are better able to formulate a national response to an emergency than federations, like Canada and the United States. Or so the argument goes.

While there are undoubtedly benefits to national leadership and a unified response, and there is obviously room for improvement with critical data collection and sharing among Canadian governments (a long-standing problem), Canada’s vast geography necessitates the need for strong local governments. The same disparities do not exist in a small country like New Zealand, which could fit inside Newfoundland and Labrador with room to spare. And the advantage of 10 provinces coming up with 10 distinct reopening strategies is that it will allow us to see what is working and what is not.

Thankfully, provincial politicians seem to recognize that their plans have to be flexible, and they would be wise to adapt them based on the experiences of others. If, for example, we start seeing large outbreaks emanating from Quebec schools, the province’s director of public health acknowledges that they will have to “reverse course.” That would also be a warning to the rest of Canada that maybe reopening schools at this time is not such a good idea.

Quebec is unique because — unlike New Brunswick, which, as of Thursday reported its 12th consecutive day of no new cases — it has fared the worst and is reopening the fastest. Speaking in the U.S. context, Marc Lipsitch, a Harvard epidemiologist, told CNN that states should not be lifting restrictions until they have fewer new cases than when the lockdowns went into place. On March 13, when Quebec’s first emergency order took effect, it reported four new cases; on April 29, it had 837. Quebec’s efforts will therefore be watched carefully. All Canadians will wish them well, of course, and if things proceed smoothly, the other provinces can follow Quebec’s lead. Conversely, of course, should the Quebec experiment prove a costly failure, that, too, will be useful to know.


A man wearing a protective face mask passes a boarded up restaurant during the global COVID-19 outbreak, in Toronto, April 6, 2020.

Chris Helgren/Reuters

Residents will not be forced to engage in activities that they feel are too risky, and along with questions about the health consequences of these reopening plans, there are also questions about the level of risk that people are willing to assume. Just because someone is legally allowed to get a massage in Saskatchewan on May 19 doesn’t mean many people are going to do so. And just because Quebec schools are open doesn’t mean parents will send their children.

But the recovery must start somewhere. And Canada’s federal structure may prove an advantage in finding that path forward.

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Energy stocks help lift S&P/TSX composite, U.S. stock markets also up

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TORONTO – Canada’s main stock index was higher in late-morning trading, helped by strength in energy stocks, while U.S. stock markets also moved up.

The S&P/TSX composite index was up 34.91 points at 23,736.98.

In New York, the Dow Jones industrial average was up 178.05 points at 41,800.13. The S&P 500 index was up 28.38 points at 5,661.47, while the Nasdaq composite was up 133.17 points at 17,725.30.

The Canadian dollar traded for 73.56 cents US compared with 73.57 cents US on Monday.

The November crude oil contract was up 68 cents at US$69.70 per barrel and the October natural gas contract was up three cents at US$2.40 per mmBTU.

The December gold contract was down US$7.80 at US$2,601.10 an ounce and the December copper contract was up a penny at US$4.28 a pound.

This report by The Canadian Press was first published Sept. 17, 2024.

Companies in this story: (TSX:GSPTSE, TSX:CADUSD)

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Canada’s inflation rate hits 2% target, reaches lowest level in more than three years

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OTTAWA – Canada’s inflation rate fell to two per cent last month, finally hitting the Bank of Canada’s target after a tumultuous battle with skyrocketing price growth.

The annual inflation rate fell from 2.5 per cent in July to reach the lowest level since February 2021.

Statistics Canada’s consumer price index report on Tuesday attributed the slowdown in part to lower gasoline prices.

Clothing and footwear prices also decreased on a month-over-month basis, marking the first decline in the month of August since 1971 as retailers offered larger discounts to entice shoppers amid slowing demand.

The Bank of Canada’s preferred core measures of inflation, which strip out volatility in prices, also edged down in August.

The marked slowdown in price growth last month was steeper than the 2.1 per cent annual increase forecasters were expecting ahead of Tuesday’s release and will likely spark speculation of a larger interest rate cut next month from the Bank of Canada.

“Inflation remains unthreatening and the Bank of Canada should now focus on trying to stimulate the economy and halting the upward climb in the unemployment rate,” wrote CIBC senior economist Andrew Grantham.

Benjamin Reitzes, managing director of Canadian rates and macro strategist at BMO, said Tuesday’s figures “tilt the scales” slightly in favour of more aggressive cuts, though he noted the Bank of Canada will have one more inflation reading before its October rate announcement.

“If we get another big downside surprise, calls for a 50 basis-point cut will only grow louder,” wrote Reitzes in a client note.

The central bank began rapidly hiking interest rates in March 2022 in response to runaway inflation, which peaked at a whopping 8.1 per cent that summer.

The central bank increased its key lending rate to five per cent and held it at that level until June 2024, when it delivered its first rate cut in four years.

A combination of recovered global supply chains and high interest rates have helped cool price growth in Canada and around the world.

Bank of Canada governor Tiff Macklem recently signalled that the central bank is ready to increase the size of its interest rate cuts, if inflation or the economy slow by more than expected.

Its key lending rate currently stands at 4.25 per cent.

CIBC is forecasting the central bank will cut its key rate by two percentage points between now and the middle of next year.

The U.S. Federal Reserve is also expected on Wednesday to deliver its first interest rate cut in four years.

This report by The Canadian Press was first published Sept. 17, 2024.

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Federal money and sales taxes help pump up New Brunswick budget surplus

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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.

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