Canada’s Economic Growth Projections Downgraded

Our growth will be far lower than in the United States.

Policies have consequences.

If one country cuts taxes, reduces regulations, and encourages the development of natural resources, it will start to grow faster.

If another country increases taxes, fails to develop resources, and imposes onerous regulations on businesses, then growth will slow.

And that’s exactly what’s happening.

The IMF has downgraded their projections for Canada’s economic growth in 2018 and 2019 from the already low level of 2.3%, to 2.1% this year, and 2.0% in 2019.

Meanwhile, economic growth in the United States is projected to hit 3.0% this year.

Keep in mind, that 1% gap in growth is a big difference.

2.0% growth is almost nothing, when we consider the yearly increase in our population is about 1.2%.

Even more concerning is the fact that these projections are being made before we see the full impact of the Trans Mountain crisis. With investment in Canada already collapsing, the Trans Mountain issue – and the weakness of the Trudeau government – is destroying confidence in Canada as a place to invest.

That loss in investment will make our economy even weaker, which is a huge problem considering the immense burden of debt faced by consumers and governments alike. While an economy can sustain debt when there is confidence in the future, when that confidence erodes that debt becomes a much larger vulnerability, which can quickly cascade into a recession or a crisis.

As a result, Canada is increasingly vulnerable, as our neighbours to the south outpace us in competitiveness and investment and faith in our economy erodes.

Spencer Fernando

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Ron Voss
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Ron Voss

This brings joy to Trudeau.
“If one country cuts taxes, reduces regulations, and encourages the development of natural resources, it will start to grow faster.” And the virtue-signallers, even conservatives, denigrate Donald Trump.

NancyW
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NancyW

Really miss Mr. Harper, he would have had Canada purring by now or soon, but instead stupid anti Canadians have us looking for pipe dreams, that needed to be built, and pie in the sky, that you cannot eat, or live on. Mr. Harper would have progress, in our Canada, Trudeau regresses, on dreams and his personal foreign agendas and hates Canadians. With Lieberals we are in an unproductive fall and failing.

Jen
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Jen

And no matter how ‘good’ the NAFTA may be planned between our two countries, as long as USA has lower taxes, less regulatory rules, while the Trudeau’ Gov maintains higher taxes, countless regulatory rules, Investments and jobs will leave.
When we shop we look for rhe best price we can afford; the same goes for businesses and investments/investors.
The Trudeau gov assumed that with Justin vain looks, businesses will pour in droves instead he is driving them away.

doug
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doug

And this surprises anyone? This country is going into the toilet under turdo #2 & hopefully Alberta will have had enough of the eastern dictatorship & hold a referendum on secession. It is time Alberta & other western provinces started looking after their own future without the ‘help’ of ottawa & the lower mainland in bc. BC will spilt apart as well as most of inland bc does not have the socialist mentality that comes from victoria.

Tommy Hawk
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At the risk of sounding somewhat coarse, this was (has been and is) his plan when he blatantly stated: “The budget will balance itself.” Those words should have been seen for what they were — the blatherings of a fool who has intentionally dragged Canada to the level of a tin pot dictatorship with his ‘social policies.’

Ivan Hawkes
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Ivan Hawkes

Any person could choose to live in a fantasy type La La Land, devoid of any kind of reality. Such a person might live on welfare or the generosity of a relative, and could possibly even hold some kind of job that requires no responsibility. Society might look upon them with pity and patience, and some would completely disregard them as they hold no real consequence in their living with a fantasy filled mind, void of any repercussions on others. However, when such an individual who chooses the fantasy mind set becomes Prime Minister, because they are a simple puppet… Read more »

Shawn Harris
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Shawn Harris

Citizens and businesses always vote with their wallets. So when Trudeau is going about deconstructing Canada and it’s citizens, then businesses are moving their money , jobs and investments to the states. The more destruction Trudeau does the more his chances of ever seeing another term in office fade, yet he can’t make that simple connection. Because he is replaying in his mind everything his father taught him and has no real plan for governing or even managing our economy. Everything he does is balanced on the socialists scale, that is always tilted in favour of ever larger and more… Read more »