The COVID-19 pandemic poses the greatest public health and economic threat to Canadians in a generation. In order to keep one another safe, we have collectively changed everything about the way we live and work. These changes have been difficult, but they are saving lives.
The federal government has developed a plan to help protect Canadians during this public health emergency and to address its extraordinary economic consequences. Since the onset of this pandemic, the federal government has invested more than eight out of every $10 spent in response to COVID-19.
The first and most important pillar in our economic strategy is to maintain a world-class public health response. The faster we defeat the virus, the faster our economy will recover.
We know this pandemic ends with a vaccine. That’s why we have secured access to the most diverse supply of vaccine candidates of any country in the world. Four of those vaccines are currently undergoing approval processes now, and the first doses are expected to arrive shortly. We have been working with the provinces for months, as well as the Canadian Armed Forces, to plan the logistics of distributing the vaccines as they arrive. When a vaccine is ready, Canada will be ready to receive it.
We have invested more than $20 billion to help keep Canadians safe by making substantial investments in testing and contract tracing, procurement of PPE for health-care professionals, and other measures to support a safe restart of the economy in each of the Provinces. This includes $2 billion in measures that are helping provincial governments provide a safe return to class for our kids, and measures to protect seniors living in long-term care.
The second pillar of our response has been to implement financial supports for Canadian households and businesses until the economy has stabilized.
When the economic consequences of the pandemic revealed themselves, we quickly implemented CERB, which helped almost nine million Canadians who lost income to keep food on the table and a roof over their heads. We have since put new income support measures in place by enhancing EI and establishing the new Canada Recovery Benefit for Canadians who lost income as a result of COVID-19.
To support businesses, we advanced the Canada Emergency Business Account, which provides $60,000 interest free supports to businesses, $20,000 of which is forgivable. To date, approximately 800,000 small and medium sized businesses have taken advantage of this program. We advanced the Canada Emergency Wage Subsidy, which pays up to 75 per cent of workers’ salaries and is helping keep nearly four million workers on payroll. We also created a new program that will help cover up to 65 per cent of rent for businesses that have lost revenue as a result of COVID-19, and up to 90 per cent when closures were made pursuant to a public health order.
Many of these programs were designed in the early days of the emergency, but we plan to continue various support measures through to at least next summer so Canadians will know their government will be there for them during this time of unprecedented economic uncertainty.
The final phase of our plan is to make significant investments that will kickstart the economy once it is safe to do so, with a view to setting the course for long term growth that is robust, sustainable, and inclusive.
The path forward will include investments to create a National Early Learning and Child Care System, universal broadband connectivity, major reform in long-term care, and transformational investments in the green economy. Initial steps for each of these measures have recently been announced and are rolling out already, with the remaining details to be included in the upcoming federal budget.
2020 is almost over. The outlook for 2021 is in our hands. So, as we head into the holiday season, let’s continue our focus on keeping each other safe so next year is better than the last.
In the meantime, our government will do whatever it takes, as long as it takes, to help keep our communities safe and to see us through to better days.
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.
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.
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.
