Canada's Economy gets Downgraded

[JLM]

I always loved it when you took your paycheck down to the ole bunk and they politely told all of us,,,,insufficient funds. Specially at Christmas time hehehe,,what a laugh had the boys rollin.

I think there was a couple of times when it was very close to the truth, actually may have been the truth but the B.C. Gov't. of the day (under Glen Clark) had a "mechanism" to short circuit it so we did get paid. Lizzy Cull did a couple of f**K ups, misplaced a $100 million at one juncture (maybe in a pocket in her purse she didn't realize she had) and another time she did a little poetic financing showing a balanced budget when there was a shortfall of a few $hundred million. Anyway just small change and we survived it.

 

[Ludlow]

well ye obviously didn't work for the imfamous Harlow. incidentally the mayn was a cross between john forsyth and herman munster

 

[mentalfloss]

The half-year of living dangerously: Canada's feeble economy so far

MICHAEL BABAD
THE GLOBE AND MAIL
Last updated Tuesday, Jun. 23, 2015 11:19AM EDT

A weak year
So much depends on where you live, of course, but 2015 is shaping up to be an exceptionally disappointing year for Canada’s economy.

The good news is that the hit from the oil shock and a soft U.S. economy should be in the rear-view mirror as we head into the second half of the year.

The bad news, though, is that it takes time to recover, at least in certain areas.

“Because the effects of weaker economic growth take longer to materialize in the job market and incomes, growth in these areas are expected to remain subdued for a few more quarters,” Toronto-Dominion Bank warned in a recent forecast.

“This, in turn, will have knock-on effects to household spending and housing market activity,” said TD chief economist Beata Caranci, deputy chief economist Derek Burleton and senior economist Randall Bartlett.


The TD report and a fresh outlook from BMO Nesbitt Burns show the first half of the year was basically a writeoff, though the next six months look better.

Still, Alberta and Newfoundland and Labrador face the threat of a recession, while Saskatchewan may “skirt by,” BMO Nesbitt Burns said in its forecast.

Both BMO and TD warn that unemployment will continue to remain just shy of 7 per cent.

To put it in perspective, BMO senior economist Sal Guatieri projected that economic growth will come in at 1.5 per cent this year, or the slowest in a non-recession year since Statistics Canada records began in the early 1980s.


TD’s forecast is close to that, at 1.6 per cent.

Canada’s economy shrank at an annual pace of 0.6 per cent in the first quarter, and BMO believes the second quarter will show a rebound of just 0.5 per cent.

Having said that, it also calls for 3.5-per-cent growth in the third quarter, and 2.2 per cent in the fourth.

Also on the bright side, he projected a pickup in exports and about 2-per-cent growth in consumer spending this year because of recent employment gains.

That 2-per-cent pace for spending, though, is “relatively lackluster” from TD’s point of view.

“The benefits of low interest rates on household spending will face a counterweight from muted job creation and wage gains, as the hangover from plummeting oil prices lingers in the labour market,” the TD forecast said.

“Employers are expected to focus increasingly on extracting efficiency gains in a challenging growth and profit environment.”

MORE ON THIS TOPIC


The half-year of living dangerously: Canada's feeble economy so far - The Globe and Mail

 

[Curious Cdn]

" So much depends on where you live, of course "

I live on a prosperous place and business has not slowed down one iota.

 

[JLM]

" So much depends on where you live, of course "

I live on a prosperous place and business has not slowed down one iota.

Count your blessings - they'll will probably be short lived!

 

[Curious Cdn]

Count your blessings - they'll will probably be short lived!

They've been saying that since the economic collapse a decade ago. This part of the country is doing quite well.

 

[pgs]

The half-year of living dangerously: Canada's feeble economy so far

MICHAEL BABAD
THE GLOBE AND MAIL
Last updated Tuesday, Jun. 23, 2015 11:19AM EDT

A weak year
So much depends on where you live, of course, but 2015 is shaping up to be an exceptionally disappointing year for Canada’s economy.

The good news is that the hit from the oil shock and a soft U.S. economy should be in the rear-view mirror as we head into the second half of the year.

The bad news, though, is that it takes time to recover, at least in certain areas.

“Because the effects of weaker economic growth take longer to materialize in the job market and incomes, growth in these areas are expected to remain subdued for a few more quarters,” Toronto-Dominion Bank warned in a recent forecast.

“This, in turn, will have knock-on effects to household spending and housing market activity,” said TD chief economist Beata Caranci, deputy chief economist Derek Burleton and senior economist Randall Bartlett.


The TD report and a fresh outlook from BMO Nesbitt Burns show the first half of the year was basically a writeoff, though the next six months look better.

Still, Alberta and Newfoundland and Labrador face the threat of a recession, while Saskatchewan may “skirt by,” BMO Nesbitt Burns said in its forecast.

Both BMO and TD warn that unemployment will continue to remain just shy of 7 per cent.

To put it in perspective, BMO senior economist Sal Guatieri projected that economic growth will come in at 1.5 per cent this year, or the slowest in a non-recession year since Statistics Canada records began in the early 1980s.


TD’s forecast is close to that, at 1.6 per cent.

Canada’s economy shrank at an annual pace of 0.6 per cent in the first quarter, and BMO believes the second quarter will show a rebound of just 0.5 per cent.

Having said that, it also calls for 3.5-per-cent growth in the third quarter, and 2.2 per cent in the fourth.

Also on the bright side, he projected a pickup in exports and about 2-per-cent growth in consumer spending this year because of recent employment gains.

That 2-per-cent pace for spending, though, is “relatively lackluster” from TD’s point of view.

“The benefits of low interest rates on household spending will face a counterweight from muted job creation and wage gains, as the hangover from plummeting oil prices lingers in the labour market,” the TD forecast said.

“Employers are expected to focus increasingly on extracting efficiency gains in a challenging growth and profit environment.”

MORE ON THIS TOPIC


The half-year of living dangerously: Canada's feeble economy so far - The Globe and Mail

There are sure a lot of for hire signs all around the lower mainland .

 

[mentalfloss]

Surprise drop in retail sales bad news for the loonie and Canada’s GDP

 

[petros]

What are they spending their money on? $15K HydroOne bills?

 

[mentalfloss]

Point?

 

[petros]

Where is the money being spent? If not food and gadgets, what then?

 

[JLM]

Where is the money being spent? If not food and gadgets, what then?

Could more money be being saved for future security?

 

[petros]

Saving up for Christmas?

 

[JLM]

Saving up for Christmas?

That too!

 

[Curious Cdn]

I battle my way along packed highways in both directions every day. Some of the major malls around here (say, Sherway Gardens) have a fuel to capacity parking lot most days of the week, not just on weekends. There is a fitness club on every bloody corner and they are all busy. There are waiting lists for my kids to get into activities that cost $$.

I am not a young guy and I have experienced three major downturns in my working life and brother, this ain't one of them.

The West is having hard times again and I am genuinely saddened. It is negatively affecting the lives of close kin of mine and I find no joy in the bad situation in the West. I will point out, though, that 2/3 of Canadians live in the Windsor to Quebec City corridor and the sky is NOT falling, there.

 

[mentalfloss]

Where is the money being spent? If not food and gadgets, what then?

Gas.

 

[JLM]

I battle my way along packed highways in both directions every day. Some of the major malls around here (say, Sherway Gardens) have a fuel to capacity parking lot most days of the week, not just on weekends. There is a fitness club on every bloody corner and they are all busy. There are waiting lists for my kids to get into activities that cost $$.

I am not a young guy and I have experienced three major downturns in my working life and brother, this ain't one of them.

The West is having hard times again and I am genuinely saddened. It is negatively affecting the lives of close kin of mine and I find no joy in the bad situation in the West. I will point out, though, that 2/3 of Canadians live in the Windsor to Quebec City corridor and the sky is NOT falling, there.

I can't speak for AB, but members of my family there are still working and as far as B.C. is concerned I don't think it's falling here either. There's adjustments to be made for sure.

 

[mentalfloss]

TransCanada, Encana both announce job cuts - The Globe and Mail

 

[taxslave]

TransCanada, Encana both announce job cuts - The Globe and Mail

Which wouldn't have happened if certain leftys were not opposed to economic development. We could be building both pipelines and the LNG plants by now if governments had the balls to do what is right for the economy.

 

[mentalfloss]

Which wouldn't have happened if certain leftys were not opposed to economic development. We could be building both pipelines and the LNG plants by now if governments had the balls to do what is right for the economy.

Laughably, the reason for this is actually the complete opposite.

It stems from the drop in oil profits which could only happen to such an extreme, in its free market industry.