Latest news with #CanadaEconomy
CTV News
09-07-2025
- Business
- CTV News
Trump announces 50 per cent tariff on imported copper weeks before deal deadline
Watch CTV's Renee Rodgers on 'the latest potential blow to Canada's economy' as U.S. President Trump announces 50 per cent tariff on imported copper.
National Post
04-07-2025
- Business
- National Post
With deficit projected to soar to $92 billion, 'it is unfair to pass these burdens on,' C.D. Howe Institute says
OTTAWA — The Carney government is poised to post a massive deficit of more than $92 billion during this fiscal year, a new report from a well-respected financial think tank projects, almost double what was forecast just a few months ago by a non-partisan arm of the government. Article content The report, from the C.D. Howe Institute, also forecasts deficits of more than $77 billion a year over the next four years, also huge increases over what had been expected. Article content Article content The think tank attributes much of the government's declining fiscal health to increased spending on defence and other items, the economic effects of the Trump tariffs, cuts to personal income tax and the GST for first-time homebuyers, and the elimination of the digital services tax. Article content Article content Based on the most current and largely optimistic variables, the report says, federal deficits will remain above $71 billion during each of the following three years and in the fiscal year 2028-29 will be greater than three times what the government itself forecast in its most recent federal budget. Article content 'It is widely accepted that Canada's economy is at a critical crossroads,' the C.D. Howe economists write. 'So are Canada's finances – beyond the economic drag of high deficits and rising debt, it is unfair to pass these burdens on to the current young and future generations.' Article content Article content But the most recent federal budget was now well over a year ago. The government took the highly unusual step this year of waiting until the fall to release its annual budget, more than half-way through the fiscal year. Article content The report's authors – William Robson, Don Drummond and Alexandre Laurin – call on Ottawa to improve its accountability by sharing its revenue and spending figures with taxpayers. Article content The gloomy fiscal forecast bolsters the argument that Canadian government spending at the federal, provincial and municipal levels is going from bad to worse. Article content Just four months ago, the Parliamentary Budget Officer projected that the federal deficit would fall to $50.1 billion during this fiscal year, a slight improvement over the $61.9 billion shortfall recorded in 2023-24. The PBO also said at that time that federal deficits would continue to fall in the ensuring years, unless there were new measures to cut revenue or increase spending. Article content The C.D. Howe report criticizes the government's decision to wait until the fiscal year is more than half over before releasing its budget 'Delaying a budget until the fiscal year is more than half over is never good, but Canada's current high-spending trajectory makes this delay especially bad.'
Reuters
27-06-2025
- Business
- Reuters
Canada's GDP contracts in April, likely another decline in May
OTTAWA, June 27 (Reuters) - Canada's economy contracted in April on a monthly basis, data showed on Friday, as sectors exposed to tariffs and uncertainty negated the impacts of a boost from services. The Gross Domestic Product contracted by 0.1% month on month in April, Statistics Canada said, led by a 0.6% decline in goods-producing industries which contribute 25% to the GDP. While there was growth in the finance and public administration, this was offset by a drop in sales in manufacturing and wholesale trade among others, Statscan said. Analysts polled by Reuters had estimated the GDP to be flat in April. The statistics agency revised the March growth figure to 0.2% from 0.1% posted earlier. An advanced estimate from Statscan showed that the GDP for May is likely to contract once again by 0.1%. A back-to-back contraction in May if materializes will not bode well for the second quarter GDP which many economists have warned will reveal the full impact of tariffs on Canada imposed by President Donald Trump. The Bank of Canada has also warned that growth in the second quarter will be substantially weaker. Surveys have showed that business investment has already been sluggish, job hiring has been muted, lay offs are picking up and there are signs that consumption is declining. Manufacturing is one of the sectors which is heavily exposed to the U.S. tariffs and contributes up to a tenth of the GDP. The sector output contracted by 1.9%, its biggest decline in four years when the pandemic was ravaging output and exports. The transportation equipment manufacturing sub sector dropped by 3.7% and was the largest contributor to the decline, Statscan said. The wholesale trade sector contracted 1.9% in April, recording the largest monthly decline since June 2023, and was largely led by a hefty fall in motor vehicle and motor vehicle parts and accessories wholesaler-distributors. Real estate and construction sectors continued their muted growth with each expanding by 0.1%. Real estate and rental and leasing accounts for the biggest contribution to GDP at 13%. Economists had said that if the growth in April was substantially weaker, and the next inflation data release is weak, it could boost chances of reduction in rates in July. Money markets are betting that the odds of a rate cut at the central bank's July 30 meeting are at around 35%. Among the sectors which added to growth were finance and insurance which grew by 0.7% registering its largest monthly increase since August last year.
Yahoo
27-06-2025
- Business
- Yahoo
Canada's GDP contracts in April, likely another decline in May
OTTAWA (Reuters) -Canada's economy contracted in April on a monthly basis, data showed on Friday, as sectors exposed to tariffs and uncertainty negated the impacts of a boost from services. The Gross Domestic Product contracted by 0.1% month on month in April, Statistics Canada said, led by a 0.6% decline in goods-producing industries which contribute 25% to the GDP. While there was growth in the finance and public administration, this was offset by a drop in sales in manufacturing and wholesale trade among others, Statscan said. Analysts polled by Reuters had estimated the GDP to be flat in April. The statistics agency revised the March growth figure to 0.2% from 0.1% posted earlier. An advanced estimate from Statscan showed that the GDP for May is likely to contract once again by 0.1%. A back-to-back contraction in May if materializes will not bode well for the second quarter GDP which many economists have warned will reveal the full impact of tariffs on Canada imposed by President Donald Trump. The Bank of Canada has also warned that growth in the second quarter will be substantially weaker. Surveys have showed that business investment has already been sluggish, job hiring has been muted, lay offs are picking up and there are signs that consumption is declining. Manufacturing is one of the sectors which is heavily exposed to the U.S. tariffs and contributes up to a tenth of the GDP. The sector output contracted by 1.9%, its biggest decline in four years when the pandemic was ravaging output and exports. The transportation equipment manufacturing sub sector dropped by 3.7% and was the largest contributor to the decline, Statscan said. The wholesale trade sector contracted 1.9% in April, recording the largest monthly decline since June 2023, and was largely led by a hefty fall in motor vehicle and motor vehicle parts and accessories wholesaler-distributors. Real estate and construction sectors continued their muted growth with each expanding by 0.1%. Real estate and rental and leasing accounts for the biggest contribution to GDP at 13%. Economists had said that if the growth in April was substantially weaker, and the next inflation data release is weak, it could boost chances of reduction in rates in July. Money markets are betting that the odds of a rate cut at the central bank's July 30 meeting are at around 35%. Among the sectors which added to growth were finance and insurance which grew by 0.7% registering its largest monthly increase since August last year. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
CBC
27-06-2025
- Business
- CBC
Canada's GDP shrank by 0.1% in April
Business ·Breaking Advance estimate for May shows similar decline in activity Canada's economy shrank by 0.1 per cent on a monthly basis in April, Statistics Canada said on Friday, with the data agency's advance estimate for May showing a similar decline in activity.
