Canada’s Economic Growth Projections Slashed

Bank of Canada predicts GDP will grow by just 1.7% in 2019, and even that may be overly optimistic.

The Bank of Canada has slashed Canada’s economic growth projections for 2019.

They’ve cut .4 points from the expected rate of GDP growth, and are now predicting growth of 1.7% in 2019.

“The Bank projects real GDP will grow by 1.7 per cent in 2019, 0.4 percentage points slower than the October outlook. This revised forecast reflects a temporary slowing in the fourth quarter of 2018 and the first quarter of 2019. This will open up a modest amount of excess capacity, primarily in oil-producing regions. Nevertheless, indicators of demand should start to show renewed momentum in early 2019, leading to above-potential growth of 2.1 per cent in 2020.”

1.7% GDP growth is a very weak number, and it’s made even weaker when we take into account the immense immigration increases under the Trudeau Liberals. And talking about ‘above potential growth’ is absurd considering population growth.

With our population growing 1.4 in 2018, that means actual growth will be just .3%. And worse, most of that growth is concentrated among a small, well-connected elite. For most Canadians, life is getting more expensive and people are becoming poorer in real terms.

However, the Bank of Canada is likely being overly optimistic. After all, 2019 is the year in which Canadians will start feeling the full impact of the federal carbon tax, which will not only depress consumer spending and worsen debt woes, but will continue to send a signal that Canada is a bad place for investment compared to our neighbours to the south.

Combined with the fact that inflation is surpassing wage growth (and wage growth is weakening), 1.7% economic growth may be a projection that gets slashed and downgraded again.

Spencer Fernando

Photo – YouTube

***

If you find value in the perspective found at SpencerFernando.com, and you are able to contribute, I ask you to support my Independent writing with a monthly contribution through Patreon or by contributing through PayPal at the button below:




2
Share Your Thoughts

avatar
2 Comment threads
0 Thread replies
0 Followers
 
Most reacted comment
Hottest comment thread
2 Comment authors
shawn harrisJim Recent comment authors
  Subscribe  
newest oldest most voted
Notify of
Jim
Guest
Jim

Sheila Gunn Reid of The Rebel reported on Jan. 8 that, according to a UN report, in order to meet UN emission targets, Canada’s economy would have to stagnate.
From The Rebel:
“The UN report says as much:

“Canada which represented 1.6% of global emissions in 2016 is one of the six G20 countries that short of enduring a low growth economics scenario will likely miss its 2020 Target of reducing emissions to 17% below the 2005 level.”

The Liberals know that. And they’re willing to do it.”

shawn harris
Guest
shawn harris

A prudent government that uses foresight, would always seek to work with businesses, investors and be very mindful of the impact of both economic policies and regulations have on the economy and our citizens. Trudeau’s approach to economics, in all practical reality, shows a rush to judgement based upon socialist ideology and his own vision of what a socialist economy and nation should look like and function. In other words, his fantasy world of solving the problems of Canada and Canadians is, by solving the world’s problems first, while also doing his destructive best to reduce our standard of living… Read more »