Connect with us

Economy

Producing vaccines, creating good jobs, and building an economy that works for all Canadians – Prime Minister of Canada

Published

 on

Amid global economic uncertainty, the Government of Canada will continue to be there for people – just like we were throughout the pandemic. By continuing to attract investment in research and development and manufacturing, we will continue to create good, middle class jobs and build an economy that works for all Canadians.

The Prime Minister, Justin Trudeau, took part in the ground-breaking of vaccine developer Moderna’s new state-of-the-art mRNA vaccine manufacturing facility in Laval, Quebec. When completed, this new facility will be able to produce up to 100 million made-in-Canada mRNA vaccine doses annually and will create hundreds of good jobs. The Prime Minister also took the opportunity to remind Canadians to keep up to date with their COVID-19 vaccinations, including getting booster shots when eligible to protect themselves and their loved ones.

The facility is expected to be completed in 2024 at the earliest. In addition to COVID-19 vaccines, it is expected to be able to produce vaccines for other respiratory diseases, such as influenza – pending their ongoing development by Moderna and approval by Health Canada.

During the pandemic, we worked hard to secure life-saving personal protective equipment, invest in our health care system, and ensure everyone eligible in Canada could get vaccinated. As we move forward, we will strengthen our biomanufacturing and life sciences sector to re-establish Canada’s domestic vaccine manufacturing capability, bring Canadian innovation to the front lines of tomorrow’s health solutions, and ensure we are better prepared for future health crises – all while growing the economy and creating good jobs.

Quotes

“COVID-19 vaccines saved lives and got Canadians back to doing the things they love. Breaking ground on this vaccine manufacturing facility is an important milestone toward ensuring that Canadian workers and Canadian innovation play a key role in keeping our communities safe building an economy that works for all Canadians.”

The Rt. Hon. Justin Trudeau, Prime Minister of Canada

“Today’s ground-breaking for Moderna’s facility in Laval brings us one step closer to seeing the future of vaccines being developed right here in Canada. With talented workers, researchers and students, Laval will play a key role in global health and health innovation. Moderna’s presence in Canada will strengthen our national biomanufacturing ecosystem, positioning the entire sector to continue to grow and to create even more jobs right across the country.”

The Hon. François-Philippe Champagne, Minister of Innovation, Science and Industry

“Staying up to date with vaccination continues to be one of the most effective ways to protect ourselves against serious illness, hospitalization, and death from COVID-19. By bolstering Canada’s domestic manufacturing capacity, we are strengthening domestic health security and pandemic preparedness through timely access to innovative, cutting-edge vaccines that help us save lives.”

The Hon. Jean-Yves Duclos, Minister of Health

“Our government is continuing to ensure Canadians have access to the latest vaccines now and into the future. Breaking ground on this new facility is another important step in our partnership with Moderna to build a domestic biomanufacturing capacity for mRNA vaccines. Access to made-in-Canada vaccines will help ensure we are ready in the event of a future pandemic. We have, and will always work to protect the health and safety of everyone in Canada.”

The Hon. Helena Jaczek, Minister of Public Services and Procurement

“I am very pleased that we were able to attract Moderna to Laval. Its arrival strengthens Laval’s long-established biopharmaceutical sector and kicks off Phase II of Biotech City.”

Stéphane Boyer, Mayor of Laval

“Today marks another milestone for Moderna and our long-term strategic partnership with the Government of Canada to support pandemic preparedness. We are moving quickly to ensure local supply and manufacturing capabilities of mRNA vaccines for Canadians, with the goal of completing our manufacturing facility in Quebec by the end of 2024.”

Noubar Afeyan, Co-founder and Chairman, Moderna

Quick Facts

  • Moderna is a pioneering biotechnology company specializing in mRNA therapeutics and vaccines. In August 2021, the Government of Canada announced a memorandum of understanding with Moderna to build a state-of-the-art mRNA vaccine production facility in Canada. In April 2022, the Prime Minister announced that plans were moving forward toward building this new facility in Quebec. Since then, a definitive agreement has been finalized between the Government of Canada and Moderna.
  • Moderna is partnering with Canada’s leading research universities and institutions to help advance cutting-edge research and development here at home.
  • Through the Strategic Innovation Fund, the government has supported projects from coast to coast to coast. This includes up to $415 million to support Sanofi in building an end-to-end influenza vaccine manufacturing facility in Toronto, Ontario; up to $175.6 million for AbCellera toward its antibody therapy research and the construction of an antibody production facility in British Columbia; $39.8 million for BioVectra to build a state-of-the-art facility in Prince Edward Island and reconfigure their facilities in Nova Scotia.
  • The government has also invested $126 million to build a new Biologics Manufacturing Centre at the National Research Council Canada’s Royalmount site in Montréal. The facility received its drug establishment licence in August 2022 and will be capable of large-quantity, end-to-end production of vaccines ‒ approximately 24 million doses annually.
  • Budget 2021 provided a total of $2.2 billion over seven years toward growing a vibrant domestic life sciences sector and securing pandemic preparedness. This funding will help build Canada’s talent pipeline and research systems, as well as foster the growth of Canadian life sciences firms.

Source link

Continue Reading

Economy

Here is Trump economy: Slower growth, higher prices and a bigger national debt

Published

 on

If Donald Trump is re-elected president of the United States in November, Americans can expect higher inflation, slower economic growth and a larger national debt, according to economists.

Trump’s economic agenda for a second term in office includes raising tariffs on imports, cutting taxes and deporting millions of undocumented migrants.

“Inflation will be the main impact” of a second Trump presidency, Bernard Yaros, lead US economist at Oxford Economics, told Al Jazeera.

“That’s ultimately the biggest risk. If Trump is president, tariffs are going up for sure. The question is how high do they go and how widespread are they,” Yaros said.

Trump has proposed imposing a 10 percent across-the-board tariff on all imported goods and levies of 60 percent or higher on Chinese imports.

During Trump’s first term in office from 2017 to 2021, his administration introduced tariff increases that at their peak affected about 10 percent of imports, mostly goods from China, Moody’s Analytics said in a report released in June.

Those levies nonetheless inflicted “measurable economic damage”, particularly to the agriculture, manufacturing and transportation sectors, according to the report.

“A tariff increase covering nearly all goods imports, as Trump recently proposed, goes far beyond any previous action,” Moody’s Analytics said in its report.

Businesses typically pass higher tariffs on to their customers, raising prices for consumers. They could also affect businesses’ decisions about how and where to invest.

“There are three main tenets of Trump’s campaign, and they all point in the same inflationary direction,” Matt Colyar, assistant director at Moody’s Analytics, told Al Jazeera.

“We didn’t even think of including retaliatory tariffs in our modelling because who knows how widespread and what form the tit-for-tat model could involve,” Colyar added.

‘Recession becomes a serious threat’

When the US opened its borders after the COVID-19 pandemic, the inflow of immigrants helped to ease labour shortages in a range of industries such as construction, manufacturing, leisure and hospitality.

The recovery of the labour market in turn helped to bring down inflation from its mid-2022 peak of 9.1 percent.

Trump has not only proposed the mass deportation of 15 million to 20 million undocumented migrants but also restricting the inflow of visa-holding migrant workers too.

That, along with a wave of retiring Baby Boomers – an estimated 10,000 of whom are exiting the workforce every day – would put pressure on wages as it did during the pandemic, a trend that only recently started to ease.

“We can assume he will throw enough sand into the gears of the immigration process so you have meaningfully less immigration, which is inflationary,” Yaros said.

Since labour costs and inflation are two important measures that the US Federal Reserve weighs when setting its benchmark interest rate, the central bank could announce further rate hikes, or at least wait longer to cut rates.

That would make recession a “serious threat once again”, according to Moody’s.

Adding to those inflationary concerns are Trump’s proposals to extend his 2017 tax cuts and further lower the corporate tax rate from 21 percent to 20 percent.

While Trump’s proposed tariff hikes would offset some lost revenue, they would not make up the shortfall entirely.

According to Moody’s, the US government would generate $1.7 trillion in revenue from Trump’s tariffs while his tax cuts would cost $3.4 trillion.

Yaros said government spending is also likely to rise as Republicans seek bigger defence budgets and Democrats push for greater social expenditures, further stoking inflation.

If President Joe Biden is re-elected, economists expect no philosophical change in his approach to import taxes. They think he will continue to use targeted tariff increases, much like the recently announced 100 percent tariffs on Chinese electric vehicles and solar panels, to help US companies compete with government-supported Chinese firms.

With Trump’s tax cuts set to expire in 2025, a second Biden term would see some of those cuts extended, but not all, Colyar said. Primarily, the tax cuts to higher earners like those making more than $400,000 a year would expire.

Although Biden has said he would hike corporate taxes from 21 percent to 28 percent, given the divided Congress, it is unlikely he would be able to push that through.

The contrasting economic visions of the two presidential candidates have created unwelcome uncertainty for businesses, Colyar said.

“Firms and investors are having a hard time staying on top of [their plans] given the two different ways the US elections could go,” Colyar said.

“In my entire tenure, geopolitical risk has never been such an important consideration as it is today,” he added.

 

728x90x4

Source link

Continue Reading

Economy

China Stainless Steel Mogul Fights to Avoid a Second Collapse

Published

 on

Chinese metal tycoon Dai Guofang’s first steel empire was brought down by a government campaign to rein in market exuberance, tax evasion accusations and a spell behind bars. Two decades on, he’s once again fighting for survival.

A one-time scrap-metal collector, he built and rebuilt a fortune as China boomed. Now with the economy cooling, Dai faces a debt crisis that threatens the future of one of the world’s top stainless steel producers, Jiangsu Delong Nickel Industry Co., along with plants held by his wife and son. Its demise would send ripples through the country’s vast manufacturing sector and the embattled global nickel market.

 

728x90x4

Source link

Continue Reading

Economy

Why Trump’s re-election could hit Europe’s economy by at least €150 billion

Published

 on

A Trump victory could trigger a 1% GDP hit to the eurozone economy, with Germany, Italy, and Finland most affected. Renewed NATO demands and potential cessation of US aid to Ukraine could further strain Europe.

The potential re-election of Donald Trump as US President poses a significant threat to the eurozone economy, with economists warning of a possible €150 billion hit, equivalent to about 1% of the region’s gross domestic product. This impact stems from anticipated negative trade repercussions and increased defence expenditures.

The recent attack in Butler, Pennsylvania, where former President Trump sustained an ear injury, has boosted his re-election odds. Prediction markets now place Trump’s chances of winning at 71%, a significant rise from earlier figures, while his opponent, Joe Biden, has experienced a sharp decline, with his chances dropping to 18% from a peak of 45% just two months ago.

Rising trade uncertainty and economic impact from tariffs

Economists James Moberly and Sven Jari Stehn from Goldman Sachs have raised alarms over the looming uncertainty in global trade policies, drawing parallels to the volatility experienced in 2018 and 2019. They argue that Trump’s aggressive trade stance could reignite these uncertainties.

“Trump has pledged to impose an across-the-board 10% tariff on all US imports including from Europe,” Goldman Sachs outlined in a recent note.

The economists predict that the surge in trade policy uncertainty, which previously reduced Euro area industrial production by 2% in 2018-19, could now result in a 1% decline in Euro area gross domestic product.

Germany to bear the brunt, followed by Italy

Germany, Europe’s industrial powerhouse, is expected to bear the brunt of this impact.

“We estimate that the negative effects of trade policy uncertainty are larger in Germany than elsewhere in the Euro area, reflecting its greater openness and reliance on industrial activity,” Goldman Sachs explained.

The report highlighted that Germany’s industrial sector is more vulnerable to trade disruptions compared to other major Eurozone economies such as France.

After Germany, Italy and Finland are projected to be the second and third most affected countries respectively, due to the relatively higher weight of manufacturing activity in their economies.

According to a Eurostat study published in February 2024, Germany (€157.7 billion), Italy (€67.3 billion), and Ireland (€51.6 billion) were the three largest European Union exporters to the United States in 2023.

Germany also maintained the largest trade surplus (€85.8 billion), followed by Italy (€42.1 billion).

Defence, security pressures and financial condition shifts

A Trump victory would also be likely to bring renewed defence and security pressures to Europe. Trump has consistently pushed for NATO members to meet their 2% GDP defence spending commitments. Currently, EU members spend about 1.75% of GDP on defence, necessitating an increase of 0.25% to meet the target.

Moreover, Trump has indicated that he might cease US military aid to Ukraine, compelling European nations to step in. The US currently allocates approximately €40bn annually (or 0.25% of EU GDP) for Ukrainian support. Consequently, meeting NATO’s 2% GDP defence spending requirement and offsetting the potential reduction in US military aid could cost the EU an additional 0.5% of GDP per year.

Additional economic shocks from Trump’s potential re-election include heightened US foreign demand due to tax cuts and the risk of tighter financial conditions driven by a stronger dollar.

However, Goldman Sachs believes that the benefits from a looser US fiscal policy would be marginal for the European economy, with by a mere 0.1% boost in economic activity.

“A Trump victory in the November election would likely come with significant financial market shifts,” Goldman Sachs wrote.

Reflecting on the aftermath of the 2016 election, long-term yields surged, equity prices soared, and the dollar appreciated significantly. Despite these movements, the Euro area Financial Conditions Index (FCI) only experienced a slight tightening, as a weaker euro counterbalanced higher interest rates and wider sovereign spreads.

In conclusion, Trump’s potential re-election could have far-reaching economic implications for Europe, exacerbating trade uncertainties and imposing new financial and defence burdens on the continent.

 

728x90x4

Source link

Continue Reading

Trending