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Rents in Canada could continue to increase as economy re-opens: Rentals.ca – Globalnews.ca

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The average rent in Canada has increased for the third month in a row, a new report says, up 1.8 per cent in July over June figures but still down 1.1 per cent from 2020 values.

Although Winnipeg’s is down slightly in July — now sitting at $1,179 for a one-bedroom unit and $1,462 for a two-bedroom unit — its average rents have increased eight and 9.8 per cent respectively since last year, according to a report by Bullpen Research & Consulting and Rentals.ca.

Winnipeg placed 25th out of 35 Canadian cities for average monthly rents in July, with Vancouver leading the pack and Toronto coming in second.

“The main takeaway is that as the pandemic recedes, rents are increasing,” content director of Rentals.ca, Paul Danison, told Global News.

Read more:
Province to up Rent Assist benefits for low-income Manitobans

Danison said he anticipates rents will go up even further as demand increases, as the Canada-U.S. border re-opens and as students return to schools, among other things, adding that people are more ready to move right now.

“We have, for rents, eclipsed pre-pandemic levels in Winnipeg. Now, in other areas, that’s not necessarily the case,” Danison said.

He said Toronto and Vancouver, along with other cities, are still down from pre-pandemic figures.

The market peaked in September 2019, with an average national monthly rent of $1,954, but then fell 14.3 per cent to a low of $1,675 in April this year. Although they’ve increased gradually since then, monthly rents are still around $200 cheaper than they were in September two years ago.

Read more:
Lack of affordable housing biggest barrier to resettling refugees in Winnipeg: report

“As employees get called back to the office, and colleges and universities announce their reopening plans, demand has increased significantly in central locations, especially in Toronto and Vancouver, where bidding wars are being reported again for rental properties,” Bullpen Research & Consulting president, Ben Myers, said in a news release Wednesday.

“The luxury rental market is returning, pulling average rental rates up with it,” Myers said.

The upward trend in national rental prices comes as the real estate market is showing some signs of easing in Manitoba.

Although housing sales still went strong in July, the Manitoba Real Estate Association (MREA) says 2,008 residential properties traded hands last month, down 2.5 per cent from last month.

“Prior to COVID-19, five straight months of 2,000-plus sales in Manitoba was unheard of,” MREA 2021 president Stewart Elston said in a news release.

Read more:
Winnipeg’s booming housing market could be here to stay: broker

Elston added that a drop in additional listings means current levels won’t be able to be maintained, although home sales have remained relatively consistent over the spring and summer.

Despite the anticipated cooling of the local real estate market, the province has seen a 38 per cent increase in sales over 2020 figures, with average prices up 10.8 per cent.

“We continue to experience strong buyer demand that is preventing inventory on the market from replenishing to pre-COVID-19 levels,” Elston said. “It remains an opportune time in the market for Manitobans who are considering listing their home.”


Click to play video: 'Lethbridge rental property rates on the rise'



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Lethbridge rental property rates on the rise


Lethbridge rental property rates on the rise

© 2021 Global News, a division of Corus Entertainment Inc.

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Canadian dollar falls as Canadian data shows economic momentum easing

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Canadian dollar

The Canadian dollar weakened against its U.S. counterpart on Thursday as the greenback notched broad-based gains and investors weighed domestic data showing some weakening in activity.

The loonie was trading 0.3% lower at 1.2675 to the greenback, or 78.90 U.S. cents, after moving in a range of 1.2616 to 1.2698.

Canadian wholesale trade fell by 2.1% in July from June, the biggest decline since April last year, and housing starts were down 3.9% in August compared with the previous month.

“Momentum (in housing starts) has been moderating after unprecedented strength earlier in the year,” Shelly Kaushik, an economist at BMO Capital Markets, said in a note.

Foreign investors are growing more worried that Canada‘s federal election on Monday could result in a deadlock that hampers Ottawa’s response to the COVID-19 pandemic and further slows the economic recovery from the crisis.

The U.S. dollar climbed to a near 3-week high against a basket of currencies after data showing U.S. retail sales unexpectedly increased in August.

The data could ease some concerns about a sharp slowdown in the U.S. economy, ahead of a Federal Reserve policy meeting next week.

U.S. crude prices were unchanged at $72.61 a barrel as the threat to U.S. Gulf production from Hurricane Nicholas receded. Oil is one of Canada‘s major exports.

Canadian government bond yields were higher across the curve. The 10-year touched its highest since Aug. 12 at 1.272% before pulling back to 1.231%, up 1.2 basis points on the day.

 

(Reporting by Fergal Smith; Editing by Bernadette Baum)

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New Zealand's Economy Was Humming Prior to Delta Lockdown – BNN

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(Bloomberg) — New Zealand’s economy was expanding at a rapid pace before a nationwide lockdown interrupted its momentum, latest data show. 

Gross domestic product climbed 2.8% in the second quarter after jumping 1.4% in the first, Statistics New Zealand said Thursday in Wellington. Economists forecast a 1.1% gain. From a year earlier, when the country was in its initial pandemic lockdown, the economy expanded 17.4% against expectations of 16.1% growth.

Today’s report will do nothing to dissuade the central bank from raising interest rates at its next meeting on Oct. 6 as it frets about mounting inflation pressures. While a contraction is expected in the current quarter after an outbreak of the delta strain of coronavirus prompted a three-week national lockdown, last year’s experience shows that demand quickly bounces back when restrictions are lifted. 

The New Zealand dollar rose on the data. It bought 71.29 U.S. cents at 10:47 a.m. in Wellington, up from 71.2 cents beforehand.

©2021 Bloomberg L.P.

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Global economy projected to show fastest growth in 50 years – UN News

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In its new report released on Wednesday, the agency said that the rebound was highly uneven along regional, sectoral and income lines, however.  

During 2022, UNCTAD expects global growth to slow to 3.6 per cent, leaving world income levels trailing some 3.7 per cent below the pre-pandemic trend line. 

The report also warns that growth deceleration could be bigger than expected, if policymakers lose their nerve or answer what it regards as misguided calls for a return to deregulation and austerity. 


Two women check industrial looms in a rug factory in Mongolia. International rules and practices have locked developing countries into pre-pandemic responses

Differences in growth 

The report says that, while the response saw an end to public spending constraints in many developed countries, international rules and practices have locked developing countries into pre-pandemic responses, and a semi-permanent state of economic stress. 

Many countries in the South have been hit much harder than during the global financial crisis. With a heavy debt burden, they also have less room for maneuvering their way out through public spending. 

Lack of monetary autonomy and access to vaccines are also holding many developing economies back, widening the gulf with advanced economies and threatening to usher in another “lost decade”. 

“These widening gaps, both domestic and international, are a reminder that underlying conditions, if left in place, will make resilience and growth luxuries enjoyed by fewer and fewer privileged people,” said Rebeca Grynspan, the secretary-general of UNCTAD. 

“Without bolder policies that reflect reinvigorated multilateralism, the post-pandemic recovery will lack equity, and fail to meet the challenges of our time.” 

Lessons of the pandemic 

UNCTAD includes several proposals in the report that are drawn from the lessons of the pandemic. 

They include concerted debt relief and even cancellation in some cases, a reassessment of fiscal policy, greater policy coordination and strong support for developing countries in vaccine deployment. 


Women sell fruit and vegetables on a sidewalk in the Philippines, where workers in the informal economy are in danger of having their livelihoods destroyed by the impacts of COVID-19.

ILO/Minette Rimando.

Women sell fruit and vegetables on a sidewalk in the Philippines, where workers in the informal economy are in danger of having their livelihoods destroyed by the impacts of COVID-19.

Even without significant setbacks, global output will only resume its 2016-19 trend by 2030. But even before COVID-19, the income growth trend was unsatisfactory, says UNCTAD. Average annual global growth in the decade after the global financial crisis was the slowest since 1945. 

Despite a decade of massive monetary injections from leading central banks, since the 2008-9 crash, inflation targets have been missed. Even with the current strong recovery in advanced economies, there is no sign of a sustained rise in prices. 

After decades of a declining wage share, real wages in advanced countries need to rise well above productivity for a long time before a better balance between wages and profits is achieved again, according to the trade and development body’s analysis. 

Food prices and global trade 

Despite current trends on inflation, UNCTAD believes the rise in food prices could pose a serious threat to vulnerable populations in the South, already financially weakened by the health crisis. 

Globally, international trade in goods and services has recovered, after a drop of 5.6 per cent in 2020. The downturn proved less severe than had been anticipated, as trade flows in the latter part of 2020 rebounded almost as strongly as they had fallen earlier. 


Lack of monetary autonomy and access to vaccines are also holding many developing economies back

Lack of monetary autonomy and access to vaccines are also holding many developing economies back, by ILO/K.B. Mpofu

The report’s modelling projections point to real growth of global trade in goods and services of 9.5 per cent in 2021. Still, the consequences of the crisis will continue to weigh on the trade performance in the years ahead. 

For director of UNCTAD’s globalization and development strategies division, Richard Kozul-Wright, “the pandemic has created an opportunity to rethink the core principles of international economic governance, a chance that was missed after the global financial crisis.” 

“In less than a year, wide-ranging US policy initiatives in the United States have begun to effect concrete change in the case of infrastructure spending and expanded social protection, financed through more progressive taxation. The next logical step is to take this approach to the multilateral level.” 

The report highlights a “possibility of a renewal of multilateralism”, pointing to the United States support of a new special drawing rights (SDR) allocation, global minimum corporate taxation, and a waiver of vaccine-related intellectual property rights.  

UNCTAD warns, though, that these proposals “will need much stronger backing from other advanced economies and the inclusion of developing country voices if the world is to tackle the excesses of hyperglobalization and the deepening environmental crisis in a timely manner.” 

For the UN agency, the biggest risk for the global economy is that “a rebound in the North will divert attention from long-needed reforms without which developing countries will remain in a weak and vulnerable position.”

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