October 2011 Canadian Economic Fundamentals
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Economic growth eases worry about recession
The Canadian economy continued to nudge ahead in July, for the second straight month, pointing to a third-quarter bounce back after a troubling contraction in the previous quarter that raised fears the country could be heading for another recession.
Gross domestic product - the broadest measure of economic activity - grew 0.3% during the month, following a 0.2 increase in June, Statistics Canada said Friday. The economy was driven mainly by manufacturing and wholesale trade, the federal agency said, while declines in sectors such as retail trade, mining and oil and gas extraction held overall gains in check.
The 0.3% advance in July's GDP was in line with economists' forecasts, and eased many concerns of back-to-back quarterly declines - the technical definition of a recession.
Read the full article here.
The Canadian economy continued to nudge ahead in July, for the second straight month, pointing to a third-quarter bounce back after a troubling contraction in the previous quarter that raised fears the country could be heading for another recession.
Gross domestic product - the broadest measure of economic activity - grew 0.3% during the month, following a 0.2 increase in June, Statistics Canada said Friday. The economy was driven mainly by manufacturing and wholesale trade, the federal agency said, while declines in sectors such as retail trade, mining and oil and gas extraction held overall gains in check.
The 0.3% advance in July's GDP was in line with economists' forecasts, and eased many concerns of back-to-back quarterly declines - the technical definition of a recession.
Read the full article here.
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GDP edges up slightly in July
The Canadian economy continued to nudge ahead in July, for the second straight month, pointing to a third-quarter bounce back after a troubling contraction in the previous quarter that raised fears the country could be heading for another recession.
Gross domestic product - the broadest measure of economic activity - grew 0.3 per cent during the month, following a 0.2 increase in June, Statistics Canada said Friday.
The economy was driven mainly by manufacturing and wholesale trade, the federal agency said, while declines in sectors such as retail trade, mining and oil and gas extraction held overall gains in check. The 0.3 per cent advance in July's GDP was in line with economists' forecasts, and eased many concerns of back-to-back quarterly declines - the technical definition of a recession.
Read the full article here.
The Canadian economy continued to nudge ahead in July, for the second straight month, pointing to a third-quarter bounce back after a troubling contraction in the previous quarter that raised fears the country could be heading for another recession.
Gross domestic product - the broadest measure of economic activity - grew 0.3 per cent during the month, following a 0.2 increase in June, Statistics Canada said Friday.
The economy was driven mainly by manufacturing and wholesale trade, the federal agency said, while declines in sectors such as retail trade, mining and oil and gas extraction held overall gains in check. The 0.3 per cent advance in July's GDP was in line with economists' forecasts, and eased many concerns of back-to-back quarterly declines - the technical definition of a recession.
Read the full article here.
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Carney touted for top global banking job
Credited with steering Canada through the last global financial crisis, Mark Carney is now being touted as the man best suited to help the world avert another one.
The Harper government is pushing for the Bank of Canada Governor to be the next chief of the Financial Stability Board (FSB), the group charged with co-ordinating the overhaul of international banking regulations on behalf of the Group of 20 nations.
Read the full article here.
Credited with steering Canada through the last global financial crisis, Mark Carney is now being touted as the man best suited to help the world avert another one.
The Harper government is pushing for the Bank of Canada Governor to be the next chief of the Financial Stability Board (FSB), the group charged with co-ordinating the overhaul of international banking regulations on behalf of the Group of 20 nations.
Read the full article here.
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Is Canada weaning itself off the U.S.?
Canadian companies are now 30% less dependent on exports south of the border than they were 10 years ago, and if Canada's economy wants to avoid the spiraling U.S. recession the best bet is to keep that trend going, a new report from CIBC World Markets said Monday.
Benjamin Tal, deputy chief economist with CIBC, said Canadian exports to the United States have slipped to pre-NAFTA levels, with emerging markets picking up the lion's share of the slack.
This is key, as it suggests that Canadian corporate balance sheets have become less sensitive to U.S. exports, which bodes well for Canada's ability to weather the debt storm brewing in the United States.
Read the full article here.
Canadian companies are now 30% less dependent on exports south of the border than they were 10 years ago, and if Canada's economy wants to avoid the spiraling U.S. recession the best bet is to keep that trend going, a new report from CIBC World Markets said Monday.
Benjamin Tal, deputy chief economist with CIBC, said Canadian exports to the United States have slipped to pre-NAFTA levels, with emerging markets picking up the lion's share of the slack.
This is key, as it suggests that Canadian corporate balance sheets have become less sensitive to U.S. exports, which bodes well for Canada's ability to weather the debt storm brewing in the United States.
Read the full article here.
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Canada moving toward trade pact with China: Minister
OTTAWA - Federal Trade Minister Ed Fast says he's concerned ``protectionism is on the rise'' amid global economic turmoil, but is confident Canada will soon ink a key trade deal with China and complete negotiations with the European Union in 2012.
Fast said Monday he's preparing for a trade mission next week to China - a country he believes is a key customer for Canada's vast natural resources - and expects negotiations with the communist country on a foreign investment and protection agreement will be completed soon.
Read the full article here.
OTTAWA - Federal Trade Minister Ed Fast says he's concerned ``protectionism is on the rise'' amid global economic turmoil, but is confident Canada will soon ink a key trade deal with China and complete negotiations with the European Union in 2012.
Fast said Monday he's preparing for a trade mission next week to China - a country he believes is a key customer for Canada's vast natural resources - and expects negotiations with the communist country on a foreign investment and protection agreement will be completed soon.
Read the full article here.
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G20 not setting Greek emergency measures: Flaherty
OTTAWA (Reuters) - The Group of 20 nations is discussing Greece's ability to deal with its debt but is not preparing emergency measures in case the struggling nation defaults, Canadian Finance Minister Jim Flaherty said on Tuesday.
Flaherty once again urged his European colleagues to take decisive action on the euro zone's debt problems, which continued to send global financial markets tumbling on Tuesday.
The Canadian minister appeared to play down earlier comments from a South Korean official, who said discussions were under way in the Group of 20 rich and developing nations to supply liquidity to the global financial system.
Read the full article here.
OTTAWA (Reuters) - The Group of 20 nations is discussing Greece's ability to deal with its debt but is not preparing emergency measures in case the struggling nation defaults, Canadian Finance Minister Jim Flaherty said on Tuesday.
Flaherty once again urged his European colleagues to take decisive action on the euro zone's debt problems, which continued to send global financial markets tumbling on Tuesday.
The Canadian minister appeared to play down earlier comments from a South Korean official, who said discussions were under way in the Group of 20 rich and developing nations to supply liquidity to the global financial system.
Read the full article here.
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Bidding wars erupt for prime condo rentals
The market for rental condos is becoming almost as hot as Toronto`s resale housing market with bidding wars breaking out among tenants trying to snag prime units.
While some 21,000 units are now under construction in Toronto ` 5,707 of them in the downtown core ` demand for rental condominiums continues to far outstrip supply, housing experts say.
Read the full article here.
The market for rental condos is becoming almost as hot as Toronto`s resale housing market with bidding wars breaking out among tenants trying to snag prime units.
While some 21,000 units are now under construction in Toronto ` 5,707 of them in the downtown core ` demand for rental condominiums continues to far outstrip supply, housing experts say.
Read the full article here.
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Housing a healthy haven for Canadians
Toronto resident Al Sinclair made a little cross-border purchase this summer after four years of window shopping.
Convinced that Florida`s devastated real estate market had finally hit bottom, Sinclair and his wife bought a two-bedroom condo overlooking St. Pete Beach.
Buoyed by the strong dollar, and battered by the whipsawing stock market, Sinclair felt it was time to bank on bricks and mortar. He snapped up the 1,800 square foot unit which, at $480,000 was just over half the $875,000 the condo sold for back in 2004.
Read the full article here.
Toronto resident Al Sinclair made a little cross-border purchase this summer after four years of window shopping.
Convinced that Florida`s devastated real estate market had finally hit bottom, Sinclair and his wife bought a two-bedroom condo overlooking St. Pete Beach.
Buoyed by the strong dollar, and battered by the whipsawing stock market, Sinclair felt it was time to bank on bricks and mortar. He snapped up the 1,800 square foot unit which, at $480,000 was just over half the $875,000 the condo sold for back in 2004.
Read the full article here.
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Canada weaning itself off exports to U.S.
Canadian companies are now 30% less dependent on exports south of the border than they were a decade ago, and if Canada`s economy wants to avoid a U.S. recession the best bet is to keep that trend going, according to a new report from CIBC World Markets.
Canadian exports to the United States have slipped to pre-NAFTA levels, with emerging markets picking up the lion`s share of the slack.
`You`re a Canadian company stuck with capacity that used to go to the U.S., but you still have to do something with it. The key message for Canadian CEOs is this is now a necessity, not just a nice-to-have,` Benjamin Tal, deputy chief economist with CIBC World Markets, said Monday. `In the past diversifying into emerging markets was a bonus but now it`s a matter of survival.`
Read the full article here.
Canadian companies are now 30% less dependent on exports south of the border than they were a decade ago, and if Canada`s economy wants to avoid a U.S. recession the best bet is to keep that trend going, according to a new report from CIBC World Markets.
Canadian exports to the United States have slipped to pre-NAFTA levels, with emerging markets picking up the lion`s share of the slack.
`You`re a Canadian company stuck with capacity that used to go to the U.S., but you still have to do something with it. The key message for Canadian CEOs is this is now a necessity, not just a nice-to-have,` Benjamin Tal, deputy chief economist with CIBC World Markets, said Monday. `In the past diversifying into emerging markets was a bonus but now it`s a matter of survival.`
Read the full article here.
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Canada top destination for business: Forbes
Canada is the top global destination for business, according to a new Forbes ranking that touts this country's economic resilience as much of the world battles major financial woes.
The top ranking marks a jump for Canada from fourth place in the ranking last year, which was due in large part to scoring higher in the tax category. Tax burden for this year's index in Canada has this country in ninth place, a stark contrast to 2010, when Canada placed 23rd in that category.
The report noted the adoption of the HST in Ontario and British Columbia, which has since voted to eliminated the new tax structure.
Read the full article here.
Canada is the top global destination for business, according to a new Forbes ranking that touts this country's economic resilience as much of the world battles major financial woes.
The top ranking marks a jump for Canada from fourth place in the ranking last year, which was due in large part to scoring higher in the tax category. Tax burden for this year's index in Canada has this country in ninth place, a stark contrast to 2010, when Canada placed 23rd in that category.
The report noted the adoption of the HST in Ontario and British Columbia, which has since voted to eliminated the new tax structure.
Read the full article here.
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Tax breaks for small business part of plan to stay course on economy: Jim Flaherty
OTTAWA ` Finance Minister Jim Flaherty re-announced a series of small tax breaks Tuesday that were originally in the budget but said his government isn't considering any drastic new measures to insulate the Canadian economy from global turmoil.
Flaherty again called on eurozone countries to get their fiscal houses in order and also said he's concerned about provinces in Canada that are facing mounting deficits and debt.
"As recent world events show, there remains considerable risk and uncertainty in the global economy, and at home too many Canadians still remain out of work," Flaherty told reporters at a news conference at Buster's Bar and Grill, a small business in Ottawa.
Read the full article here.
OTTAWA ` Finance Minister Jim Flaherty re-announced a series of small tax breaks Tuesday that were originally in the budget but said his government isn't considering any drastic new measures to insulate the Canadian economy from global turmoil.
Flaherty again called on eurozone countries to get their fiscal houses in order and also said he's concerned about provinces in Canada that are facing mounting deficits and debt.
"As recent world events show, there remains considerable risk and uncertainty in the global economy, and at home too many Canadians still remain out of work," Flaherty told reporters at a news conference at Buster's Bar and Grill, a small business in Ottawa.
Read the full article here.
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Kick-start energy projects to boost stalled economy
With economic gloom all around us, Canada is going to have to be a lot more self-reliant if it wants to keep on creating jobs and prosperity in the years to come, warns Avery Shenfeld.
Fortunately, he has an idea that might help. Shenfeld, chief economist at CIBC World Markets, believes that Canada can leverage its already-strong position as an energy giant simply by hustling to get moving on many billions of dollars worth of petroleum and electricity-generation projects, many already on the drawing board.
Read the full article here.
With economic gloom all around us, Canada is going to have to be a lot more self-reliant if it wants to keep on creating jobs and prosperity in the years to come, warns Avery Shenfeld.
Fortunately, he has an idea that might help. Shenfeld, chief economist at CIBC World Markets, believes that Canada can leverage its already-strong position as an energy giant simply by hustling to get moving on many billions of dollars worth of petroleum and electricity-generation projects, many already on the drawing board.
Read the full article here.
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The hidden Canadian housing bubble
Let me be provocative and say that our real estate bubble has the same fundamental problem as the one in the U.S., which exploded gloriously, kicking off the financial crisis.
The bubble in real estate has been extremely slow growing, but bubbles do have a way of going parabolic right before their collapse. Is real estate in Canada parabolic? It doesn`t appear so on a year-over-year basis. But it certainly does look that way when one looks at the 50-year trend, which is consistent with the rest of what I`m about to say.
Read the full article here.
Let me be provocative and say that our real estate bubble has the same fundamental problem as the one in the U.S., which exploded gloriously, kicking off the financial crisis.
The bubble in real estate has been extremely slow growing, but bubbles do have a way of going parabolic right before their collapse. Is real estate in Canada parabolic? It doesn`t appear so on a year-over-year basis. But it certainly does look that way when one looks at the 50-year trend, which is consistent with the rest of what I`m about to say.
Read the full article here.
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Our economic fate is tied to commodities, not Europe
I`ve been making the point over the past few years (for example, here, here and here) that the Canadian 2008-09 recession was caused by the combination of a credit crunch and a sharp drop in commodity prices. When those causes were removed in mid-2009, our economy was able to recover. In May 2010, I noted that `[a]s long as commodity prices continue to recover, so will the Canadian economy.`
Read the full article here.
I`ve been making the point over the past few years (for example, here, here and here) that the Canadian 2008-09 recession was caused by the combination of a credit crunch and a sharp drop in commodity prices. When those causes were removed in mid-2009, our economy was able to recover. In May 2010, I noted that `[a]s long as commodity prices continue to recover, so will the Canadian economy.`
Read the full article here.
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Canadian home prices resilient in third quarter
Royal LePage says home prices remained unexpectedly resilient across Canada's housing market in the third quarter, but the overall strength is concealing signs of moderation in some regions.
In its House Price Survey and Market Survey Forecast, Royal LePage says that Canada's residential real estate market benefited from very low interest rates and a relatively stable domestic economy.
Read the full article here.
Royal LePage says home prices remained unexpectedly resilient across Canada's housing market in the third quarter, but the overall strength is concealing signs of moderation in some regions.
In its House Price Survey and Market Survey Forecast, Royal LePage says that Canada's residential real estate market benefited from very low interest rates and a relatively stable domestic economy.
Read the full article here.
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What's the real story of Canada's housing market?
OTTAWA ` Home prices rose during the third quarter of 2011, but the raw numbers may not be telling the whole story of the Canadian housing market, a new survey says.
The Royal LePage House Price Survey released Wednesday found that the average price of a home in Canada increased between 5.7% and 7.8% in the third quarter of 2011 compared with the same period last year.
The average price of a detached bungalow was $349,974, a standard two-storey home was $388,218 and a standard condominium was $239,300, according to the survey.
Royal LePage said that the rise in price defied expectations and suggested that record-low interest rates and a fairly stable Canadian economy have bolstered consumer confidence.
Read the full article here.
OTTAWA ` Home prices rose during the third quarter of 2011, but the raw numbers may not be telling the whole story of the Canadian housing market, a new survey says.
The Royal LePage House Price Survey released Wednesday found that the average price of a home in Canada increased between 5.7% and 7.8% in the third quarter of 2011 compared with the same period last year.
The average price of a detached bungalow was $349,974, a standard two-storey home was $388,218 and a standard condominium was $239,300, according to the survey.
Royal LePage said that the rise in price defied expectations and suggested that record-low interest rates and a fairly stable Canadian economy have bolstered consumer confidence.
Read the full article here.
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Too soon for economic stimulus in Canada: Flaherty
OTTAWA`Despite turmoil on the world economic scene, Finance Minister Jim Flaherty says it`s still too soon to stimulate the Canadian economy to head off a possible downturn.
`If we had some sort of world recession, obviously, then that would change the picture dramatically, but you know, I`m relatively confident that what we`re going to see in Canada is modest economic growth over the next while,` Flaherty said Tuesday.
Opposition MPs have been demanding the Harper government launch a new spending program to stave off a domestic recession.
Read the full article here.
OTTAWA`Despite turmoil on the world economic scene, Finance Minister Jim Flaherty says it`s still too soon to stimulate the Canadian economy to head off a possible downturn.
`If we had some sort of world recession, obviously, then that would change the picture dramatically, but you know, I`m relatively confident that what we`re going to see in Canada is modest economic growth over the next while,` Flaherty said Tuesday.
Opposition MPs have been demanding the Harper government launch a new spending program to stave off a domestic recession.
Read the full article here.
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Cash flowing to U.S. from 'green' intiatives not what it seems
Canadians need to be aware that the long arm of American interests is behind many of the so-called grassroots protests taking place in Western Canada.
That is, U.S.-based charitable foundations, which clearly have their own priorities, are contributing major dollars to Canadian environmental groups.
Most of us don't think much about where organizational funding comes from when we witness well-orchestrated protests against, say, fish farming, or the proposed Enbridge Northern Gateway pipeline, or campaigns for an oil-tanker ban off B.C.'s north coast.
Read the full article here.
Canadians need to be aware that the long arm of American interests is behind many of the so-called grassroots protests taking place in Western Canada.
That is, U.S.-based charitable foundations, which clearly have their own priorities, are contributing major dollars to Canadian environmental groups.
Most of us don't think much about where organizational funding comes from when we witness well-orchestrated protests against, say, fish farming, or the proposed Enbridge Northern Gateway pipeline, or campaigns for an oil-tanker ban off B.C.'s north coast.
Read the full article here.
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Oil sands CO2 to match conventional in decade: Suncor
Carbon-dioxide emissions per barrel of oil produced from Alberta`s oil sands will probably fall to levels of conventional drilling in as little as a decade, Suncor Energy Inc.`s Chief Executive Officer Rick George said.
`With these new technologies, I wouldn`t be at all surprised if we can actually get to conventional kind of levels in the next 10 to 15 years,` George said at an industry event in Calgary Wednesday. `It`s not tomorrow. But I wouldn`t underestimate this industry`s resolve or ability to drive change.`
Oil sands crude results in emissions from production and consumption in vehicles that are about 20% higher than the average emissions of conventional oil production in the U.S., according to the Natural Resources Defense Council. Total emissions from the oil sands will likely increase eightfold from 1990 levels by 2020, Canada`s Pembina Institute says.
Read the full article here.
Carbon-dioxide emissions per barrel of oil produced from Alberta`s oil sands will probably fall to levels of conventional drilling in as little as a decade, Suncor Energy Inc.`s Chief Executive Officer Rick George said.
`With these new technologies, I wouldn`t be at all surprised if we can actually get to conventional kind of levels in the next 10 to 15 years,` George said at an industry event in Calgary Wednesday. `It`s not tomorrow. But I wouldn`t underestimate this industry`s resolve or ability to drive change.`
Oil sands crude results in emissions from production and consumption in vehicles that are about 20% higher than the average emissions of conventional oil production in the U.S., according to the Natural Resources Defense Council. Total emissions from the oil sands will likely increase eightfold from 1990 levels by 2020, Canada`s Pembina Institute says.
Read the full article here.