The Bank of Canada increased its policy rate by 75 basis points on Wednesday, bringing the overnight rate to 3.25%, and said that it would continue to reduce its balance sheet. The rate hike came as no surprise, with inflation still pervasive. While economic growth has moderated abroad and at ... READ MORE >
Canada
Housing proved a drag on Canada’s economy in the second quarter
Canada’s real gross domestic product rose by 0.1% in June from May amid a slumping housing sector, according to data released by Statistics Canada on Wednesday. For the second quarter overall, the economy posted a 3.3% gain, which fell short of expectations. While the economy is not in recession, the ... READ MORE >
After a strong recovery in Canada, economic headwinds set in
The Canadian economy has had a robust recovery from the lockdowns of the pandemic as pent-up consumer demand and generous government spending have fueled growth. But now with rising inflation, especially in food and energy prices, and a historically tight labour market, that growth is ... READ MORE >
Immigration is key to solving Canada’s labour shortage
There is no denying it: Canada is experiencing a historic labour shortage. The job market has been running hot for months, with the unemployment rate falling to 4.9%, the lowest on record. The pandemic and subsequent reopening have been the catalyst. At the onset of the pandemic, workers were laid ... READ MORE >
Inflation eases amid falling gasoline prices
After a year of consecutive increases, inflation has finally begun to ease, hitting 7.6% on a year-over-year in July amid declining gasoline prices. Compared to June, inflation went up by a modest 0.1%. Nonetheless, most measures of core inflation increased, which means inflation remains pervasive ... READ MORE >
Canada’s jobs fall in July as unemployment rate remains steady
Canada’s economy shed 31,000 jobs in July while the unemployment rate remained at a historic low of 4.9%, confirming what the strong gross domestic product numbers have been showing: The economy is not in recession. The low unemployment rate, released by Statistics Canada on Friday, furthers the ... READ MORE >
Canada’s GDP steady as spending on services remained strong in May
Canada’s May GDP remained unchanged from April, as increases in service spending (0.4%) offset decreases in goods-producing industries (1%), according to data released by Statistics Canada on Friday. On a year-over-year basis, GDP grew by 5.6%, exceeding expectations. This makes Canada an interesting ... READ MORE >
RSM Canada Supply Chain Index turns positive amid slowing economy
The global supply chain is finally turning around as the economy enters a slowdown, consumer demand softens and some of the back-ordered goods from last year are finally arriving. Those changes are showing up in RSM Canada's Supply Chain Index, which in June turned positive for the first time since ... READ MORE >
Canada inflation hits 8.1% but shows signs of softening
Inflation reached 8.1% in June in Canada, the highest since January 1983, although the pace of the increase eased compared to previous months, according to data released by Statistics Canada on Wednesday. On a monthly basis, the consumer price index rose by 0.7% in June, down from 1.4% in May. More ... READ MORE >
Canadian housing starts fall slightly in a sign of possible cooling
Housing starts in Canada fell to 273,800 in May, a 3% drop from April, according to data released by the Canadian Mortgage and Housing Corporation on Monday. Although housing starts are still much higher than during the pre-pandemic era, the slight decline might be a preview of the construction ... READ MORE >