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One shot to put the economy back on track – 100 Mile House Free Press

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On March 23, all three parties at the Legislature came together in an extraordinary moment of cooperation to fight COVID-19.

All political differences were set aside and within just a few hours an additional $5 billion for COVID spending was added to the annual budget.

This included $1.5 billion that was earmarked for economic recovery. Unfortunately, and now nearly six months later, the NDP government is still sitting on the money and has failed to put a cent of it towards the remobilization of our economy.

Rather than put taxpayer’s money to effective use, the Premier has decided instead to send out a questionnaire in a public relations campaign designed to buy votes in the Lower Mainland.

According to the Business Council of British Columbia, 10 to 15 percent of the province’s 200,000 small businesses could fail by 2021.

We are talking about the backbone of our provincial economy. Jobs that support families and put food on the table.

Losing that many businesses will plunge B.C. into deeper unemployment, which currently stands at a shocking 11.1 percent.

We used to be the number one economy in the whole country. Now we have fallen to fifth place compared to all other provinces.

As the Official Opposition, we have repeatedly called for assistance for small businesses, including a 60 to 90-day break from major taxes, rent relief for small businesses, support for tourism, and a dedicated rural B.C. prosperity strategy.

Now is the time to be bold and brave when it comes to saving jobs and putting the economy back on track.

We only have one shot at this.

A $1.5 billion political slush fund (election?) is not what the province needs right now.


newsroom@100milefreepress.net

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Economy

India's central bank to keep rates on hold, provide economic forecasts – The Journal Pioneer

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By Swati Bhat

MUMBAI (Reuters) – The Reserve Bank of India is expected to keep key rates unchanged this week, but may for the first time since February provide guidance on how the economy is performing amid the coronavirus pandemic.

All 66 respondents in a Reuters poll expect the repo rate to remain unchanged at 4.0% after its policy review on Thursday, and a large majority see no cuts until the January-March quarter. The RBI will then likely stay on hold until the end of 2021.

The central bank must manage high retail inflation while keeping policy accommodative to support an economy which nosedived 23.9% last quarter, the weakest performance on record.

It has so far slashed rates by 115 basis points in response to the COVID-19 pandemic since late March.

“India’s inflation-constrained central bank is unlikely to deliver a rate cut, and we expect all policy rates to stay unchanged,” said Rahul Bajoria, economist with Barclays adding that the RBI will however provide economic projections.

India is gradually reopening its economy from a lockdown but economic activity remains depressed as coronavirus cases top six million, the second-highest globally.

The South Asian country was already facing a cyclical downturn before the pandemic struck and is now expected to mark its first full-year contraction since 1979 this year as millions are left unemployed in the world’s second-most populous country.

The RBI has so far refrained from providing any forecasts on growth or inflation due to the heightened uncertainty and risk of projections having to be revised frequently.

However, the central bank is required by law to provide economic forecasts once every six months.

“Data projections from the central bank will be critical, as it would lay out the RBI’s assessment of the extent of the current slowdown and the medium-term implications of the current crisis,” Bajoria said.

The RBI has maintained that it sees the current rise in inflation as transitional and expects to see prices come down, giving it room to reduce rates to support growth.

August inflation, at 6.69%, held above the top end of the RBI’s medium-term target range of 2-6% for the fifth consecutive month amid supply disruptions.

(Editing by Jacqueline Wong)

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Economy Week Ahead: Factories, Consumer Spending and Employment – The Wall Street Journal

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The Grove retail and entertainment complex in Los Angeles drew shoppers as restrictions on gatherings have eased.

Photo: valerie macon/Agence France-Presse/Getty Images

The U.S. jobs report for September highlights a week of data that will show how economies are recovering from coronavirus-induced recessions and from continued disruptions related to the pandemic.

Wednesday

China’s official purchasing managers index for manufacturing is expected to show factory activity expanded for the seventh straight month in September. Economists said manufacturers have sped up production to avoid shipment delays in the event buyers experience a return of Covid-19 this winter.

Thursday

The
Bank of Japan’s
tankan corporate sentiment survey for the third quarter is expected to improve, reflecting a gradual resumption of economic activity. In the second quarter, sentiment among Japan’s large manufacturers deteriorated to its lowest level in 11 years and even a significant gain will still show that more companies say business conditions are unfavorable than favorable.

The number of workers covered by Europe’s furlough schemes has been declining since lockdowns were eased, but without causing a surge in the number of people without jobs. That trend likely continued in August, with figures released by the European Union’s statistics agency expected to show that the jobless rate rose to 8.1% from 7.9% in July.

U.S. jobless claims have steadied at an elevated level in recent weeks, suggesting a slowdown in the labor market’s recovery. Economists expect only a slight decline in the number of applications for unemployment benefits during the week ended Sept. 26, underscoring continued labor-market disruption and a historically high number of layoffs.

U.S. consumer spending is expected to post another monthly increase in August, though at a slower pace than recent months. That would likely reflect several trends, including a partial rebound in employment, the expiration of some federal government benefits tied to the pandemic, and strong demand for many goods alongside a weaker recovery in the service sector.

The Institute for Supply Management’s September purchasing managers index for manufacturing is likely to reflect a strong rebound in factory activity amid a slow global recovery and strong domestic demand for autos, electronics and other goods.

Friday

Consumer prices in the eurozone were lower than they were a year earlier in August, and figures to be released by the European Union’s statistics agency are expected to show that they remained so in September, increasing the likelihood that the European Central Bank will have to provide further stimulus if it is to meet its inflation target.

U.S. nonfarm payrolls are expected to post another strong gain and the unemployment rate to decline in September as more businesses recall workers. But the pace of hiring might have slowed and the overall level of employment will likely remain millions of jobs short of pre-pandemic levels, underscoring the severe damage from the pandemic and the long road to full recovery.

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Economy

Economy Week Ahead: Factories, Consumer Spending and Employment – Wall Street Journal

Published

on


The Grove retail and entertainment complex in Los Angeles drew shoppers as restrictions on gatherings have eased.

The Grove retail and entertainment complex in Los Angeles drew shoppers as restrictions on gatherings have eased.

Photo: valerie macon/Agence France-Presse/Getty Images

The U.S. jobs report for September highlights a week of data that will show how economies are recovering from coronavirus-induced recessions and from continued disruptions related to the pandemic.

Wednesday

China’s official purchasing managers index for manufacturing is expected to show factory activity expanded for the seventh straight month in September. Economists said manufacturers have sped up production to avoid shipment delays in the event buyers experience a return of Covid-19 this winter.

Thursday

The
Bank of Japan’s
tankan corporate sentiment survey for the third quarter is expected to improve, reflecting a gradual resumption of economic activity. In the second quarter, sentiment among Japan’s large manufacturers deteriorated to its lowest level in 11 years and even a significant gain will still show that more companies say business conditions are unfavorable than favorable.

The number of workers covered by Europe’s furlough schemes has been declining since lockdowns were eased, but without causing a surge in the number of people without jobs. That trend likely continued in August, with figures released by the European Union’s statistics agency expected to show that the jobless rate rose to 8.1% from 7.9% in July.

U.S. jobless claims have steadied at an elevated level in recent weeks, suggesting a slowdown in the labor market’s recovery. Economists expect only a slight decline in the number of applications for unemployment benefits during the week ended Sept. 26, underscoring continued labor-market disruption and a historically high number of layoffs.

U.S. consumer spending is expected to post another monthly increase in August, though at a slower pace than recent months. That would likely reflect several trends, including a partial rebound in employment, the expiration of some federal government benefits tied to the pandemic, and strong demand for many goods alongside a weaker recovery in the service sector.

The Institute for Supply Management’s September purchasing managers index for manufacturing is likely to reflect a strong rebound in factory activity amid a slow global recovery and strong domestic demand for autos, electronics and other goods.

Friday

Consumer prices in the eurozone were lower than they were a year earlier in August, and figures to be released by the European Union’s statistics agency are expected to show that they remained so in September, increasing the likelihood that the European Central Bank will have to provide further stimulus if it is to meet its inflation target.

U.S. nonfarm payrolls are expected to post another strong gain and the unemployment rate to decline in September as more businesses recall workers. But the pace of hiring might have slowed and the overall level of employment will likely remain millions of jobs short of pre-pandemic levels, underscoring the severe damage from the pandemic and the long road to full recovery.

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