Canada’s economic growth rate slows while U.S. gains speed


mentalfloss
#1
Canada’s economic growth rate slows while U.S. gains speed

More Americans are getting jobs, buying houses and feeling generally optimistic while Canada’s economic recovery appears about to stall.

Consider this tale of two economies:
The U.S. created 243,000 jobs in January, twice the expected rate. Unemployment declined 0.2 percentage points to 8.3 per cent.
In comparison, Canada’s economy created almost zero jobs while the unemployment rate edged up 0.1 per cent to 7.6 per cent as more people looked for work.

The latest good news came Monday, when the National Association of Realtors said the number of Americans buying resale homes in January hit a two-year high.

While far from a boom, it suggests the country is over the worst of the foreclosures sparked by the financial crisis of 2008. This follows a surge in U.S. employment last month.

Economists will be watching closely to see whether this week’s round of economic data confirms the trend.

A report on U.S. consumer confidence levels is due out Tuesday, while new jobless figures are set for release on Thursday.

A faster growing U.S. economy can only be good news for Canada, its largest trading partner.

On Friday, Canadians will see what impact the U.S. recovery so far has had on its gross domestic product, the ultimate measure of how fast an economy is growing.

There have already been some signs that Canada is reaping the benefits.

Canada’s exports rose at an annualized rate of 7 per cent in the last three months of 2011, most of that due to stronger sales to the U.S., noted John Clinkard, chief economist with Deutsche Bank Canada. “There’s clear evidence the stronger demand is starting to have a positive impact on manufacturing in Canada,” Clinkard said in a telephone interview.

By itself, a U.S. recovery will not be enough to turbo charge Canada’s economic growth.

With a higher Canadian dollar, relative to the U.S. greenback, manufacturers have lost a lot of their price competitiveness, particularly in southern Ontario, Hodgson said

To succeed, Canada needs to become more innovative, more productive and develop a greater diversity of trading partners, Hodgson said.

With 70 per cent of Canada’s exports going to the U.S., he said, “We’re still very dependent on one market.”

And with the federal and Ontario governments both talking about cutting costs, while Canadian households feel stretched by excessive debt, domestic spending is expected to slow, Hodgson added.


Canada's growth rate slows, while U.S. goes up
 
captain morgan
#2
There is always going to be lag-time for Canada in this scenario.

The USA is one of the biggest consumers on the planet. It takes time for the effects of the trade balance to trickle through the system.

In terms of the growth #'s. That is a difficult comparison in that the USA took a pretty big hit in this last recession whereas Canada came out relatively unscathed. It's only natural that the recovery in the USA be more pronounced - in fact, I am a little surprised that teh numbers aren't even stronger right now.
 
petros
#3
Ahh the annual agriculture hiring is being pumped again as "improvement" is it?
 
captain morgan
#4
I didn't think that the US counted the illegal Mexican immigrants in on the count
 
petros
#5
Quote: Originally Posted by captain morganView Post

I didn't think that the US counted the illegal Mexican immigrants in on the count

They've used annual Ag hiring over the past and apparently feel it's appropriate today.
 
captain morgan
#6
My mistake, I thought that we were talking about the stronger employment #'s in the USA
 
petros
#7
Quote: Originally Posted by captain morganView Post

My mistake, I thought that we were talking about the stronger employment #'s in the USA

It looks great on the first two quarter but no so good on the last two when the Ag lay offs hit.
 
captain morgan
#8
I remember you mentioning the 'traveling' agri groups that do contract work on large farms... That still something that you see in Sask?
 
petros
+1
#9  Top Rated Post
Yup. Mexican permit veggie pickers are still the norm and will only increase as things keep on booming. If the Mexicans fall short, we have a back up plan to import even more Filipinos since Canadians are too goddam lazy to move to find work.


Some Flip can leave his/her entire familiy behind clear across the planet in Manila to come to SK to work but it's too much for an unemployed Canadian.
 
captain morgan
#10
Quote: Originally Posted by petrosView Post

Yup. Mexican permit veggie pickers are still the norm and will only increase as things keep on booming. If the Mexicans fall short, we have a back up plan to import even more Filipinos since Canadians are too goddam lazy to move to find work.


Some Flip can leave his/her entire familiy behind clear across the planet in Manila to come to SK to work but it's too much for an unemployed Canadian.

Maybe the Filipinos don't realize that it's one of their human rights to collect welfare or EI.
 
petros
#11
I think they like to eat so they stay away from the poverty traps.
 
captain morgan
#12
What an interesting practice.. They sure are a strange culture, aren't they?
 
petros
+1
#13
Who knew eating was so high on their list of priorities?
 

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