remember that Greenspan fella who ran the Fed and printed cash wildly? He was boinking Rand. Ewwwww.
Canada’s economic growth outlook not good this year
- Thread starter mentalfloss
- Start date
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.
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.
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.
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.
As eating is probably the number one necessity of life, I should think there is a career there somewhere, like maybe “McDonald’s Enhanced”!
Canadian economy is losing some of its shine, economist says
“Today, most of the developed world basks in reviving growth forecasts, whereas Canadian growth prospects have become somewhat tattered.” He sees several key factors that will constrain the economy over the coming years and diminish returns for investors.
One is the country’s penchant for living beyond its means. The current account deficit is the biggest it’s been in 20 years.
Canada is consuming some $65 billion more in goods and services than it produces — a trend that is sustainable only if foreign investors continue to lend more to Canada.
“It is not an optimal position to be in,” observes Lascelles. Over time, the current account deficit should erode as foreign demand for Canadian products picks up, but the gap will have to be made up through spending restraint.
Another issue that complicates Canada’s growth prospects is the size of its output gap. That’s the difference between what the economy produces today and its full potential.
Turns out the gap could be smaller than we think, he says, leaving less upside for the economy in the future.
The Bank of Canada figures the output gap is 1.5 per cent of GDP vs. 2.7 per cent in the U.K. and 3.5 per cent in the U.S. But Lascelles argues that in Canada it may be as small as 0.5 per cent, as firms are reporting a harder time meeting demand for their products and are also confronting growing labour shortages.
“This leaves less room for the economy to grow and (for) financial markets to rise in the future.”
A third red flag is the housing market, which has repeatedly defied expectations of a correction and which continues to chug along at an impressive pace. On the surface, all seems well, as housing starts continue to expand and affordability seems unshaken.
But the backlog of condominiums under construction is unprecedented, he says. And “housing affordability is only normal because borrowing costs are historically low.” As rates rise, the picture will change and there could be a bulge of unsold units.
Hand-in-hand with the housing slowdown is the constraint coming from household credit. Canada’s household credit growth has shrunk by two-thirds from its peak to just 3.9 per cent a year — the lowest rate in three decades.
Canadian economy is losing some of its shine, economist says
“Today, most of the developed world basks in reviving growth forecasts, whereas Canadian growth prospects have become somewhat tattered.” He sees several key factors that will constrain the economy over the coming years and diminish returns for investors.
One is the country’s penchant for living beyond its means. The current account deficit is the biggest it’s been in 20 years.
Canada is consuming some $65 billion more in goods and services than it produces — a trend that is sustainable only if foreign investors continue to lend more to Canada.
“It is not an optimal position to be in,” observes Lascelles. Over time, the current account deficit should erode as foreign demand for Canadian products picks up, but the gap will have to be made up through spending restraint.
Another issue that complicates Canada’s growth prospects is the size of its output gap. That’s the difference between what the economy produces today and its full potential.
Turns out the gap could be smaller than we think, he says, leaving less upside for the economy in the future.
The Bank of Canada figures the output gap is 1.5 per cent of GDP vs. 2.7 per cent in the U.K. and 3.5 per cent in the U.S. But Lascelles argues that in Canada it may be as small as 0.5 per cent, as firms are reporting a harder time meeting demand for their products and are also confronting growing labour shortages.
“This leaves less room for the economy to grow and (for) financial markets to rise in the future.”
A third red flag is the housing market, which has repeatedly defied expectations of a correction and which continues to chug along at an impressive pace. On the surface, all seems well, as housing starts continue to expand and affordability seems unshaken.
But the backlog of condominiums under construction is unprecedented, he says. And “housing affordability is only normal because borrowing costs are historically low.” As rates rise, the picture will change and there could be a bulge of unsold units.
Hand-in-hand with the housing slowdown is the constraint coming from household credit. Canada’s household credit growth has shrunk by two-thirds from its peak to just 3.9 per cent a year — the lowest rate in three decades.
Canadian economy is losing some of its shine, economist says
The author of that line is a lying bag of snot or brain cell impaired. The developed world is in collapse. I've been listening to reviving growth forcasts since Brian Mullrooney screwed the country with free trade.
