Latest news with #economicupdate
CBC
14 hours ago
- Business
- CBC
Fiscal update paints rosy picture for N.L. despite increased spending
Finance Minister Siobhan Coady says Newfoundland and Labrador's economy is strong, as she delivered an economic update on Monday that showed the province was spending more money and bringing in less. The update for the period from April to July was required by provincial legislation which says government must give a financial update no less than 15 days before the fixed general election date. The provincial election must happen on or before Oct. 14. Coady said several economic indicators are expected to be better this year than what was forecast in the 2025 budget tabled in April, including real gross domestic product (GDP) growth, which is anticipated to be 6.3 per cent instead of the forecast 4.4 per cent. Much of that growth was due to increased consumer spending. "We are forecast to lead the country in economic growth, and have the highest retail sales in our province's history," Coady said in her update. Retail sales were 8.3 per cent higher as of May 2025 than the same time last year. Newfoundland and Labrador residents have been reporting higher costs for food and other essential goods. Coady said the province's unemployment rate is expected to be 9.9 per cent this year — one of the lowest ever recorded in Newfoundland and Labrador, according to her department's news release. Housing starts were also better than forecast in this year's budget. That indicator is expected to increase by 20 per cent in 2025, with 2,006 units reported so far. Wildfire expenses Coady said the provincial government spent more money in the first quarter of 2025 largely because of health care pressures and the ongoing wildfires. "We are keeping these expenses as under control as possible, but we do expect them to be higher than anticipated," she said. The province had a $200-million contingency budget for its U.S. tariff response, but Coady said it wasn't needed for its intended purpose. Instead, $25 million from the contingency budget was used to cover expenses related to the wildfires. She said the money was mostly spent on extra equipment. "We don't know … how much more we're going to have to spend on wildfires," she said. "We're going to continue to utilize and do what we need to do to get these wildfires under control, and to help the people of the province." Deficit jumps to $626M as oil price projections fall Meanwhile, the province's deficit climbed to $626 million. Projected revenues were expected to be $254 million less than forecast. Coady said volatile oil prices and the exchange rate had a hand in that. She said oil price projections fell to $66 US per barrel, while the 2025 budget had pegged oil prices at $73 US per barrel. "A big change in the deficit does not equal a change in borrowing," Coady said. She said the province still expects to borrow $4.1 billion this year. She said borrowing can remain the same, despite the increased spending, because some "pre-borrowing" was done. In a written statement, PC Leader Tony Wakeham said the fiscal update was "short on detail and has no rigor."
News.com.au
11-08-2025
- Business
- News.com.au
Why Australia is losing 24 affordable houses every day
The dream of affordable housing slips further away as new research reveals Australian cities are hemorrhaging 24 sub-$750,000 homes every single day. The latest Ray White Economic Update analysed properties that sold for under $750,000 across Australia's nine capital cities between 2015 and 2025 - and the result was alarming. 'Sydney leads the decline with 7.1 affordable properties disappearing daily, followed by Brisbane losing 5.0 and Melbourne 3.6,' the report by Ray White chief economist Nerida Conisbee said. 'Even smaller markets show significant losses - Gold Coast sheds 2.5 properties daily, Adelaide 2.1, while Canberra and Hobart each lose around 0.7 properties per day. 'Darwin stands alone as the only capital showing growth, gaining 0.3 affordable properties daily.' On the flip side, the unit market across the combined capital cities was adding 1.5 affordable properties daily, albeit this growth falls far short from offsetting house losses - creating a net reduction of nearly 23 affordable homes daily. 'Looking specifically at houses, Sydney loses 5.8 affordable houses daily - equivalent to one house vanishing from the affordable market every four hours,' Conisbee said. 'Brisbane follows closely at 5.5 houses per day, while Melbourne sheds 5.1 daily. 'Between 2015 and 2025, Sydney's affordable house stock collapsed from 24,009 to just 2,674 – an 89 per cent decline that mirrors similar trends across the Gold Coast (94 per cent decline) and Canberra (89 per cent decline).' Perth loses 2.7 affordable houses daily, while Adelaide – traditionally an affordable capital - now sheds 2.2 houses per day from its sub-$750,000 market. 'Even smaller markets aren't immune,' Conisbee noted. Conisbee warned that on current trajectories, Sydney's would have zero affordable houses by 2027. 'While Brisbane and Melbourne retain larger affordable stocks, their rapid daily losses signal similar endpoint scenarios within the decade,' she said. Conisbee said that the crisis stemmed from multiple converging factors, including rising construction costs, which peaked at 17.8 per cent annually in 2022, pushing new housing in many cities beyond affordable thresholds. 'Chronic undersupply means demand continues outstripping available stock, while government first-home buyer assistance schemes paradoxically inflate prices by increasing buyer purchasing power without addressing supply constraints,' she said. 'Ideally affordable units would be able to offset the reduction in affordable houses and the number of units priced under $750,000 has increased dramatically. 'Cities like Perth have seen 105 per cent growth in affordable unit sales, and Darwin recorded 71 per cent growth. 'Nationally, capitals are gaining just 1.5 affordable units per day (but) the increase is clearly not enough to offset the drop in houses.' Conisbee said that affordable unit gains compensate for only six per cent of affordable house losses, creating a net reduction of 22.9 affordable properties daily across all capitals. Even cities showing unit growth like Melbourne (+1.5 units daily) and Perth (+1.1 units daily) cannot match their house losses of 5.1 and 2.7 respectively. 'Australia is losing nearly 23 affordable homes daily with minimal replacement stock filling the void,' she said. The report comes as a new survey by Finder revealed that 35 per cent of Aussies do not believe they will ever be able to afford a home. Graham Cooke, head of consumer research at Finder, said the dream of homeownership was slipping out of reach for more Australians. 'Record prices, steep borrowing costs, and saving for a deposit are locking people out,' Cooke said. 'In many suburbs, even a six-figure salary won't comfortably cover a mortgage.'
Zawya
21-07-2025
- Business
- Zawya
Equatorial Guinea Economic Update: Managing Equatorial Guinea's Wealth for Sustainable Growth and Development
The World Bank issued today the 2025 Equatorial Guinea Economic Update which analyzes the country's recent economic developments and outlook and highlights the importance of a comprehensive accounting of wealth and the role of human, physical, and natural capital in shaping sustainable growth and development, with a focus on the value of forest ecosystem services. Equatorial Guinea's economy grew by an estimated 0.9% in 2024 (compared to 5.1% in 2023), with higher contributions from the industrial and service sectors. Inflation increased from 2.4% to 3.4% between 2023 and 2024. Soaring food prices and sluggish growth along with limited employment opportunities contributed to rising poverty, with an estimated 57% of the population living below the poverty line ($6.85 in 2017 Purchasing Power Parity) in 2024. Fiscal and external balances deteriorated in 2024, mainly due to declining hydrocarbon export earnings, while debt-to-GDP ratio declined thanks to the authorities' efforts to clear arrears. This year's report shows that Equatorial Guinea's produced capital increased 100-fold between 1995 and 2020, bolstered by public investments following major oil and gas discoveries. However, capital accumulation has slowed since the end of the oil boom. While education and health outcomes have improved in Equatorial Guinea in recent years, additional efforts are needed to bring the country's human capital outcomes in line with countries of a similar income level. Despite a 30% decrease in nonrenewable natural capital from 2005 to 2020, the hydrocarbon sector continues to dominate the economy, accounting for over 80% of revenues and nearly 46% of GDP in 2024. 'Equatorial Guinea has achieved notable advancements over the past few decades. Leveraging its wealth in natural resources, especially oil, the country has experienced substantial economic growth, considerable infrastructure development, and improvements in certain social indicators,' said Juan Diego Alonso, the new World Bank Group Resident Representative for Equatorial Guinea. 'However, given the decline in the hydrocarbon sector, it is imperative to implement comprehensive reforms to diversify the economy, utilizing the nation's rich assets including the forestry sector.' The forest cover in Equatorial Guinea decreased from an estimated 97% in 2000 to 94.5% in 2020. While forest provisioning services—such as wood, fuelwood, and wild resources—have increased and remain vital for rural livelihoods and economic activity, critical regulating services like carbon sequestration and sediment control are under growing threat due to forest loss and degradation. It is critical to maximize forest ecosystem services by adopting a holistic strategy that integrates land-use planning, sustainable agriculture, access to clean energy, and sustainable tourism. The report emphasizes the need for increased international support for Congo Basin countries, including Equatorial Guinea, to ensure adequate compensation for their forest preservation efforts and support the transformation of carbon retention services into tangible benefits. ' Equatorial Guinea can boost growth and job creation by leveraging forest ecosystem services in wood processing, ecotourism, and agriculture sectors. However, this will require continued investments and reforms to create an enabling environment,' said Djeneba Doumbia, Country Economist for Equatorial Guinea and lead author of the report. Download the Equatorial Guinea Economic Update 2025 in English. Distributed by APO Group on behalf of The World Bank Group.
Zawya
15-07-2025
- Business
- Zawya
Cameroon's Economic Update: Harnessing Forests and Natural Wealth for Sustainable Growth
The World Bank Group today launched the 2025 Cameroon Economic Update, titled ''Cameroon's Green Gold: Unlocking the Value of Forests and Natural Capital''. The report provides a comprehensive analysis of the nation's recent economic developments, medium-term outlook, and the critical role of wealth accounting in assessing the country's economic performance. The report places a special emphasis on the importance of sustainable forests and natural resources management as drivers of inclusive and resilient development. According to the report, Cameroon's GDP grew by 3.5% in 2024, up from 3.2% in 2023, driven by rising cocoa prices, enhanced cotton yields, and improved power supply. Average inflation declined sharply from 7.4% to 4.5% between 2023 and 2024, thanks to tighter monetary policy, price controls, and reduced import inflation. The current account deficit narrowed from 4.1% to 3.4% of GDP%, mainly due to the cocoa price surge. However, the overall fiscal deficit widened to 1.5% of GDP, compared to 0.7% of GDP in 2023, due to a slippage in current expenditures and weaker-than-expected revenues. Public debt rose slightly from 46.1% to 46.8% of GDP, with most of this increase in the form of external debt. The medium-term outlook is moderately positive, with an anticipated average real GDP growth of 3.9% from 2025 to 2028, supported by improved power generation and increased public investment – particularly in the construction sector. Average inflation is expected to decline further, reaching the 3% CEMAC convergence criteria by 2027. However, the current account deficit is expected to increase at around 4.0% of GDP over the medium term, due to declining oil production and prices, mixed results from government industrial policies, and increased inputs as a result of higher public and private investment. While Cameroon's external and overall public debt are expected to remain sustainable, the country faces a high risk of debt distress due to liquidity issues. ' Cameroon's economy has demonstrated resilience amidst external shocks, yet multiple structural weaknesses – particularly infrastructure gaps – impede its potential,' said Robert Utz, World Bank Lead Country Economist and one of the report's authors. ''A bold fiscal reform agenda is imperative to bridge those gaps and boost economy-wide productivity.' The report also introduces national wealth accounting as a critical tool for policy makers to better understand Cameroon's economic capacity to generate future income and sustain development. Although total national wealth grew from $311 billion in 1995 to $553 billion in 2020, national wealth per capita declined by 11% over the same period. Adjusted net savings (ANS) – a broader picture of a nation's economic sustainability – was moderately negative between 2010 and 2020, suggesting that Cameroon is depleting its wealth slightly faster than it is accumulating new assets. Forest depletion accelerated dramatically after 2010, with the conversion of lowland forests for agricultural use between 2010 and 2020, five times the rate of the previous decade. At the same time, the ecological condition of Cameroon's forests has deteriorated significantly, with satellite data showing declines in tree height, canopy cover, forest connectivity, and landscape naturalness ' To minimize the environmental impact of growth and preserve natural wealth, Cameroon could prioritize its high-value, vulnerable ecosystems and transition to a forest-based service economy, leveraging ecotourism, medicinal services with its unique flora, and forest-based knowledge, ' said Cheick F. Kanté, World Bank Division Director for Cameroon, Central African Republic, the Republic of Congo, Gabon and Equatorial Guinea. The report underscores that to achieve its goal of becoming an emerging economy by 2035, Cameroon must diversify beyond primary commodities. With one of Africa's most unique ecosystems, a competitive tourism sector could become a key driver of growth and employment—leveraging natural capital that few other countries can match. Distributed by APO Group on behalf of The World Bank Group.
National Post
03-06-2025
- Business
- National Post
Liberals downplay narrowly lost vote demanding spring budget
OTTAWA — The Liberals downplayed a vote on the throne speech they narrowly lost Monday evening to all the opposition parties which urges the government to present an economic update or a budget before the House of Commons rises for the summer on June 20. Article content Article content The sub-amendment, brought forward by Conservative interim leader Andrew Scheer, called for a 'firm commitment' to present a fiscal overview of the country's finances this spring 'that incorporates measures aimed at unleashing Canada's economic potential.' Article content It was adopted Monday by 166 votes — comprised of the Conservatives, the Bloc Québécois, the NDP and Green Party's Elizabeth May — against 164 Liberal votes. Article content Article content It is, however, a non-binding vote, meaning that the government is under no obligation to present a spring economic update or a budget. But the vote in this new minority Parliament showed how opposition parties can aspire to go up against the government and its razor-thin margin in the House. Article content Mark Gerretsen, the chief government whip who is responsible for ensuring that Liberal MPs attend and vote in the way the party desires, insisted nothing went wrong. Article content 'We knew the outcome of what that vote was going to be,' he told reporters on Tuesday. Article content Gerretsen said Liberals have 169 MPs, one of whom is the House Speaker, and four MPs did not vote because of 'paired abstentions.' Those happen when parties agree to have a member sit out a vote because someone from another party is not able to attend. Article content 'Every single person that was supposed to vote yesterday voted,' he said. Article content Justice Minister Sean Fraser admitted the government is in 'new territory' with its minority mandate and parties can sway things on any given vote with very thin margins. Article content 'I try not to bake feelings into these things. They're math challenges, not problems with feelings. But we have to make sure that we do the work necessary to try to collaborate with parties across the aisle in order to implement the mandate that Canadians have given us.' Article content Finance Minister François-Philippe Champagne said last month there would be no federal budget in the spring, but a fall economic statement. Shortly after, Prime Minister Mark Carney said his government would present a budget during the fall session instead. Article content 'We will have a much more comprehensive, effective, ambitious, prudent budget in the fall,' he said during a media availability in Rome, where he was to commemorate Pope Leo XIV's inaugural mass. 'You do these things right and that's what we're going to do.'
