Canada’s economic growth outlook not good this year


mentalfloss
#1
Canada’s economic growth outlook too ‘rosy,’ says report

OTTAWA — It may not be smooth sailing after all for the Canadian economy.

Many positive outlooks for growth in 2014 have been buoyed by a stronger-than-expected performance in the third-quarter of last year — along with a pickup in the global economy overall — but some analysts are sounding a more pessimistic tone.

“The consensus view that economic growth will accelerate this year is misplaced,” say economists at Capital Economics.

“While exports and business investment should improve modestly, we anticipate this will be more than offset by weaker housing construction, triggered by a pullback in the overbuilt condo market, and more cautious household consumption growth,” the Toronto-based independent global research group said in a report Friday.

“Although a downshifting housing recovery will keep performance from matching the U.S., faster growth there will lend support, encouraging the Bank of Canada’s hoped-for rotation from consumers and housing to trade and investment.”

Not necessarily so, say Capital economists Amna Asaf and David Madani.

In fact, they are predicting much weaker growth in Canada this year, despite the upturn in the U.S. and elsewhere.

“Our view stands in contrast to the more rosy consensus forecast that GDP growth will accelerate to 2.3% in 2014,” they said in their report, predicting a much slower 1.5% pace this year.

“With U.S. economic growth strengthening, Europe emerging from recession and emerging Asia [economies] showing signs of recovery, we certainly expect Canada’s exporters to fare better this year,” they wrote.

“But the growing gap between non-commodity exports and U.S. economic activity is bothersome, convincing us that a full export recovery will take much longer than normal.”

“We expect net exports and business investment to improve only gradually, contributing positively, but modestly, to GDP growth in 2014.

“In addition, negative knock-on effects to household confidence and consumer spending are likely to occur, as households’ faith in housing as a stable investment is shaken,” they said.

“Falling new home sales and rising unsold housing inventory have already prompted developers to scale back the number of new condo projects.”

Canada’s economic growth outlook too ‘rosy,’ says report | Financial Post
 
damngrumpy
No Party Affiliation
+1
#2  Top Rated Post
There is not global pick up in the economy. World wide there is a false economy
and has been since the meltdown. All governments are doing is putting bandages
on whatever they can and the problems will soon be back. The difference is we
won't have the money we wasted in 2008 propping things up anymore.
Harper spared us from nothing all the problems are still there. Its a case of what's
behind door number three as it were.
 
grumpydigger
#3
The Harpo government has been using the old bait and switch with the economy for quite a few years.
Telling the Canadian people that they're the only ones who were qualified to control the economy.
meanwhile consumer credit card debt is at its highest ever.And middle-class wages compared to the cost of living is dropping radically.

The Harper majority he pleaded for during the last election has proven to be a complete failure. if we cannot get a change in government he must be held to a minority position .

People must learn to live within their means. When you're in your early 20s don't expect the fancy cars and big houses your parents work their whole lives for.
 
petros
#4
Too many tulips.
 
damngrumpy
No Party Affiliation
#5
We have a generation who are not striving for the cars and houses they are
demanding them and if they don't get them there will be hell to pay. Then
who painted the rose coloured world? Look in the mirror
 
Machjo
#6
We all need to learn to live within our means. This means that we must all lower our material expectations. But how do we do that when Government economic policy actively encourages spending?

As an example, if you borrow, you're rewarded with artificially low interest rates. Right after 2008, if you bought a car, it was partly subsidized indirectly by the government. The government gives tax breaks to resource industries, again to encourage consumption. On the one hand, the government tells us to save. On the other, it is actively encouraging us to spend. Total lack of consistency.

Just look at the OP. Growth, growth, growth is the mantra. What ever happened to stability?
 
relic
Free Thinker
#7
And you have neither.
 
Machjo
#8
Quote: Originally Posted by relicView Post

And you have neither.

We have been having growth. I'm just not sure about stability seeing that it all seems to be fed by debt.
 
mentalfloss
#9
Corporate mergers to remain slow as uncertainty clouds economy - The Globe and Mail
 
Walter
#10
That's good because we can't have those corps getting bigger; they're evil and only want profits.
 
mentalfloss
#11
Quote: Originally Posted by WalterView Post

That's good because we can't have those corps getting bigger; they're evil and only want profits.

I think what you meant to say is that unfettered capitalism benefits the consumers because it naturally welcomes competition.

At least that's what Ayn Rand told me once - god bless her soul.
 
Walter
#12
Quote: Originally Posted by mentalflossView Post

I think what you meant to say is that unfettered capitalism benefits the consumers because it naturally welcomes competition.

At least that's what Ayn Rand told me once - god bless her soul.

Lefties don't like corps.
 
JLM
No Party Affiliation
#13
Quote: Originally Posted by mentalflossView Post

I think what you meant to say is that unfettered capitalism benefits the consumers because it naturally welcomes competition.

At least that's what Ayn Rand told me once - god bless her soul.


I thought Ayn Rand was an A$$hole! No?
 
Walter
#14
Quote: Originally Posted by JLMView Post

I thought Ayn Rand was an A$$hole! No?

Lefties think so.
 
JLM
No Party Affiliation
#15
Quote: Originally Posted by mentalflossView Post

Canada’s economic growth outlook too ‘rosy,’ says report

OTTAWA — It may not be smooth sailing after all for the Canadian economy.

Many positive outlooks for growth in 2014 have been buoyed by a stronger-than-expected performance in the third-quarter of last year — along with a pickup in the global economy overall — but some analysts are sounding a more pessimistic tone.

“The consensus view that economic growth will accelerate this year is misplaced,” say economists at Capital Economics.

“While exports and business investment should improve modestly, we anticipate this will be more than offset by weaker housing construction, triggered by a pullback in the overbuilt condo market, and more cautious household consumption growth,” the Toronto-based independent global research group said in a report Friday.

“Although a downshifting housing recovery will keep performance from matching the U.S., faster growth there will lend support, encouraging the Bank of Canada’s hoped-for rotation from consumers and housing to trade and investment.”

Not necessarily so, say Capital economists Amna Asaf and David Madani.

In fact, they are predicting much weaker growth in Canada this year, despite the upturn in the U.S. and elsewhere.

“Our view stands in contrast to the more rosy consensus forecast that GDP growth will accelerate to 2.3% in 2014,” they said in their report, predicting a much slower 1.5% pace this year.

“With U.S. economic growth strengthening, Europe emerging from recession and emerging Asia [economies] showing signs of recovery, we certainly expect Canada’s exporters to fare better this year,” they wrote.

“But the growing gap between non-commodity exports and U.S. economic activity is bothersome, convincing us that a full export recovery will take much longer than normal.”

“We expect net exports and business investment to improve only gradually, contributing positively, but modestly, to GDP growth in 2014.

“In addition, negative knock-on effects to household confidence and consumer spending are likely to occur, as households’ faith in housing as a stable investment is shaken,” they said.

“Falling new home sales and rising unsold housing inventory have already prompted developers to scale back the number of new condo projects.”

Canada’s economic growth outlook too ‘rosy,’ says report | Financial Post








I think it might be a blessing in disguise. We’ve seen nothing but economic growth for 70 years and where has it gotten us? Our money is worth nothing anymore, I was just thinking today that it now costs us about $15 to buy what $1 used to buy. We’ve accumulated so much material stuff, that most of us don’t even know we’ve got or even where it is. We used to be happy living in a 4 room house with running water and a light bulb in every room. Our time used to be taken up with productive and healthy activities and not tied to electronic gadgetry. We’re living longer but dying sooner. The only ones “benefitting” are the rich. But they are also dropping dead from strokes, heart attacks and aneurisms! Nice life!
 
Walter
#16
Quote: Originally Posted by JLMView Post

I think it might be a blessing in disguise. We’ve seen nothing but economic growth for 70 years and where has it gotten us? Our money is worth nothing anymore, I was just thinking today that it now costs us about $15 to buy what $1 used to buy. We’ve accumulated so much material stuff, that most of us don’t even know we’ve got or even where it is. We used to be happy living in a 4 room house with running water and a light bulb in every room. Our time used to be taken up with productive and healthy activities and not tied to electronic gadgetry. We’re living longer but dying sooner. The only ones “benefitting” are the rich. But they are also dropping dead from strokes, heart attacks and aneurisms! Nice life!

Was yer resolution to be happier?
 
petros
#17
Quote: Originally Posted by JLMView Post

I thought Ayn Rand was an A$$hole! No?

Indeed and is why Rands economic delusions have all been abandoned post 2008 with a return to Kenysians economics which spurred the recovery.
 
Walter
#18
Quote: Originally Posted by petrosView Post

Indeed and is why Rands economic delusions have all been abandoned post 2008 with a return to Kenysians economics which spurred the recovery.

What recovery?
 
petros
#19
Haven't you been paying attention or you just chirp like a chick hoping for a worm?
 
JLM
No Party Affiliation
#20
Quote: Originally Posted by petrosView Post

Indeed and is why Rands economic delusions have all been abandoned post 2008 with a return to Kenysians economics which spurred the recovery.


I just skimmed over an account of her in Wikipedia............too deep for me. I think the woman had more ideas than D*ck Tracy.
 
petros
#21
remember that Greenspan fella who ran the Fed and printed cash wildly? He was boinking Rand. Ewwwww.
 
L Gilbert
No Party Affiliation
+1
#22
Quote: Originally Posted by mentalflossView Post

Canada’s economic growth outlook too ‘rosy,’ says report

OTTAWA — It may not be smooth sailing after all for the Canadian economy.Canada’s economic growth outlook too ‘rosy,’ says report | Financial Post

Big deal. Economies go up, they go down. And the people that came up with the system should have been drawn and quartered, burned at the stake, etc. because it has caused more grief than good by an astronomical amount.
Predictions are just that and they should be taken as guesses and not fact.
 
mentalfloss
#23
Quote: Originally Posted by JLMView Post

I thought Ayn Rand was an A$$hole! No?

She's also Wally's Messiah even when he's so authoritarian it would make a national socialist blush.

Hence him believing a corporate monopoly is completely natural when one of the tenets of capitalism is to foster opportunity for competition.
Last edited by mentalfloss; Jan 6th, 2014 at 06:45 PM..
 
Machjo
#24
Honestly though, I don't think it's fair to hold a government responsible for lack of growth in an economy, since there is only so much a responsible government can do.

What we can hold a government to account for is relative stability and long-term planning, such as ensuring the unemployed of today get the education they need to get back into the workforce and that the young get a quality education.

Beyond that, there is not much a responsible government can do.
 
mentalfloss
#25
The way are economy is going most people are getting McJobs instead of a proper education and career.
 
petros
#26
Quote: Originally Posted by mentalflossView Post

The way are economy is going most people are getting McJobs instead of a proper education and career.

It depends where you choose to reside in Canada. McJobs here go to TFWs who pull in 25K a year.

You can either sit and whine or grow a pair and head West.
 
JLM
No Party Affiliation
#27
Quote: Originally Posted by mentalflossView Post

The way are economy is going most people are getting McJobs instead of a proper education and career.




As eating is probably the number one necessity of life, I should think there is a career there somewhere, like maybe “McDonald’s Enhanced”!
 
petros
#28
There is always panhandling.
 
JLM
No Party Affiliation
#29
Quote: Originally Posted by petrosView Post

There is always panhandling.


Even that is difficult when you don't have a pot to piss in! -
 
petros
+1
#30
Quote: Originally Posted by JLMView Post

Even that is difficult when you don't have a pot to piss in! -

50 cents for one at ValueVillage.
 
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