Confirmed cases of the new omicron coronavirus variant continued popping up around the world on Sunday as Australia joined the growing list of countries reporting cases. The recent discovery of the new strain has seen countries try to seal themselves off by imposing travel restrictions and is also sending stocks tumbling and causing oil prices to fall.
The Australian cases were the latest indication that the variant may prove hard to contain and will be a fresh hit to the global economy. First discovered in South Africa, it has since been detected in Britain, Germany, Italy, Belgium, Botswana, Israel and Hong Kong. Austria was investigating a suspected case on Sunday.
The discovery of omicron, dubbed a “variant of concern” last week by the World Health Organization (WHO), has sparked worries around the world that it could resist vaccinations and prolong the nearly two-year COVID-19 pandemic.
Omicron is potentially more contagious than previous variants, although experts do not know yet if it will cause more or less severe COVID-19 compared to other strains.
On Sunday, most Gulf stock markets fell sharply in early trade, with the Saudi index suffering its biggest single-day fall in nearly two years.
In the most far-reaching effort to keep the variant at bay, Israel announced late on Saturday it would ban the entry of all foreigners and reintroduce counter-terrorism phone-tracking technology to contain the spread of the variant.
Prime Minister Naftali Bennett said the ban, pending government approval, would last 14 days. Officials hope that within that period there will be more information on how effective vaccines are against omicron.
The German state of Bavaria also announced two confirmed cases of the variant on Saturday. In Italy, the National Health Institute said a case of the new variant had been detected in Milan in a person coming from Mozambique.
As for the economic impact side, “Investors are likely to shoot first and ask questions later until more is known,” Jeffrey Halley of Oanda said Friday in a report.
Ray Attrill, head of FX strategy at National Australia Bank in Sydney, is of the same opinion. “You shoot first and ask questions later when this sort of news erupts,” Attrill said.
“Markets have been quite complacent about the pandemic for a while, partly because economies have been able to withstand the impact of selective lockdown measures. But we can see from the new emergency brakes on air travel that there will be ramifications for the price of oil,” said Chris Scicluna, head of economic research at Daiwa.
Vaccine disparities
Although epidemiologists say travel curbs may be too late to stop omicron from circulating, many countries – including the United States, Brazil, Canada, European Union nations, Australia, Japan, South Korea and Thailand – have announced travel bans or restrictions on southern Africa.
More countries imposed such curbs on Sunday, including Indonesia and Saudi Arabia.
Mexico’s deputy health secretary, Hugo Lopez Gatell, said travel restrictions are of little use in response to the new variant, calling measures taken by some countries “disproportionate.”
“It has not been shown to be more virulent or to evade the immune response induced by vaccines. They affect the economy and well-being of people,” he said in a Twitter post on Saturday.
Omicron has emerged as many countries in Europe are already battling a surge in COVID-19 infections, with some reintroducing restrictions on social activity to try to stop the spread.
The new variant has also thrown a spotlight on huge disparities in vaccination rates around the globe. Even as many developed countries are giving third-dose boosters, less than 7% of people in low-income countries have received their first COVID-19 shot, according to medical and human rights groups.
Seth Berkley, CEO of the GAVI Vaccine Alliance that with the WHO co-leads the COVAX initiative to push for equitable distribution of vaccines, said this was essential to ward off the emergence of more coronavirus variants.
“While we still need to know more about omicron, we do know that as long as large portions of the world’s population are unvaccinated, variants will continue to appear, and the pandemic will continue to be prolonged,” he said in a statement to Reuters on Saturday.
OTTAWA – Canada’s unemployment rate held steady at 6.5 per cent last month as hiring remained weak across the economy.
Statistics Canada’s labour force survey on Friday said employment rose by a modest 15,000 jobs in October.
Business, building and support services saw the largest gain in employment.
Meanwhile, finance, insurance, real estate, rental and leasing experienced the largest decline.
Many economists see weakness in the job market continuing in the short term, before the Bank of Canada’s interest rate cuts spark a rebound in economic growth next year.
Despite ongoing softness in the labour market, however, strong wage growth has raged on in Canada. Average hourly wages in October grew 4.9 per cent from a year ago, reaching $35.76.
Friday’s report also shed some light on the financial health of households.
According to the agency, 28.8 per cent of Canadians aged 15 or older were living in a household that had difficulty meeting financial needs – like food and housing – in the previous four weeks.
That was down from 33.1 per cent in October 2023 and 35.5 per cent in October 2022, but still above the 20.4 per cent figure recorded in October 2020.
People living in a rented home were more likely to report difficulty meeting financial needs, with nearly four in 10 reporting that was the case.
That compares with just under a quarter of those living in an owned home by a household member.
Immigrants were also more likely to report facing financial strain last month, with about four out of 10 immigrants who landed in the last year doing so.
That compares with about three in 10 more established immigrants and one in four of people born in Canada.
This report by The Canadian Press was first published Nov. 8, 2024.
The Canadian Institute for Health Information says health-care spending in Canada is projected to reach a new high in 2024.
The annual report released Thursday says total health spending is expected to hit $372 billion, or $9,054 per Canadian.
CIHI’s national analysis predicts expenditures will rise by 5.7 per cent in 2024, compared to 4.5 per cent in 2023 and 1.7 per cent in 2022.
This year’s health spending is estimated to represent 12.4 per cent of Canada’s gross domestic product. Excluding two years of the pandemic, it would be the highest ratio in the country’s history.
While it’s not unusual for health expenditures to outpace economic growth, the report says this could be the case for the next several years due to Canada’s growing population and its aging demographic.
Canada’s per capita spending on health care in 2022 was among the highest in the world, but still less than countries such as the United States and Sweden.
The report notes that the Canadian dental and pharmacare plans could push health-care spending even further as more people who previously couldn’t afford these services start using them.
This report by The Canadian Press was first published Nov. 7, 2024.
Canadian Press health coverage receives support through a partnership with the Canadian Medical Association. CP is solely responsible for this content.
As Canadians wake up to news that Donald Trump will return to the White House, the president-elect’s protectionist stance is casting a spotlight on what effect his second term will have on Canada-U.S. economic ties.
Some Canadian business leaders have expressed worry over Trump’s promise to introduce a universal 10 per cent tariff on all American imports.
A Canadian Chamber of Commerce report released last month suggested those tariffs would shrink the Canadian economy, resulting in around $30 billion per year in economic costs.
More than 77 per cent of Canadian exports go to the U.S.
Canada’s manufacturing sector faces the biggest risk should Trump push forward on imposing broad tariffs, said Canadian Manufacturers and Exporters president and CEO Dennis Darby. He said the sector is the “most trade-exposed” within Canada.
“It’s in the U.S.’s best interest, it’s in our best interest, but most importantly for consumers across North America, that we’re able to trade goods, materials, ingredients, as we have under the trade agreements,” Darby said in an interview.
“It’s a more complex or complicated outcome than it would have been with the Democrats, but we’ve had to deal with this before and we’re going to do our best to deal with it again.”
American economists have also warned Trump’s plan could cause inflation and possibly a recession, which could have ripple effects in Canada.
It’s consumers who will ultimately feel the burden of any inflationary effect caused by broad tariffs, said Darby.
“A tariff tends to raise costs, and it ultimately raises prices, so that’s something that we have to be prepared for,” he said.
“It could tilt production mandates. A tariff makes goods more expensive, but on the same token, it also will make inputs for the U.S. more expensive.”
A report last month by TD economist Marc Ercolao said research shows a full-scale implementation of Trump’s tariff plan could lead to a near-five per cent reduction in Canadian export volumes to the U.S. by early-2027, relative to current baseline forecasts.
Retaliation by Canada would also increase costs for domestic producers, and push import volumes lower in the process.
“Slowing import activity mitigates some of the negative net trade impact on total GDP enough to avoid a technical recession, but still produces a period of extended stagnation through 2025 and 2026,” Ercolao said.
Since the Canada-United States-Mexico Agreement came into effect in 2020, trade between Canada and the U.S. has surged by 46 per cent, according to the Toronto Region Board of Trade.
With that deal is up for review in 2026, Canadian Chamber of Commerce president and CEO Candace Laing said the Canadian government “must collaborate effectively with the Trump administration to preserve and strengthen our bilateral economic partnership.”
“With an impressive $3.6 billion in daily trade, Canada and the United States are each other’s closest international partners. The secure and efficient flow of goods and people across our border … remains essential for the economies of both countries,” she said in a statement.
“By resisting tariffs and trade barriers that will only raise prices and hurt consumers in both countries, Canada and the United States can strengthen resilient cross-border supply chains that enhance our shared economic security.”
This report by The Canadian Press was first published Nov. 6, 2024.
