Canada Economics Weekly Tougher mortgage rules will only make matters worse Federal banking regulators decision to forge ahead with recent proposals to tighten mortgage rules further will only make matters much worse for the already faltering housing market. Needless to say... 6th October 2017 · 1 min read
Canada Economics Weekly Aerospace dispute raises spectre of trade war The US Commerce Department’s preliminary decision to slap prohibitive countervailing duties on Canadian aerospace firm Bombardier threatens to cause a major trade spat between Canada and the US... 29th September 2017 · 1 min read
Canada Economics Weekly Household indebtedness highest among G7 The strong GDP performance over the first half of the year means that Canada will probably finish at the top of the G7 growth ladder this year. More worryingly, however, it also takes first place when... 22nd September 2017 · 1 min read
Canada Economics Weekly At least income inequality isn’t getting worse The latest Census data show that average growth in the median total income of households was disappointing over 2005 to 2015 which might, we suspect, prompt renewed speculation of worsening income... 15th September 2017 · 1 min read
Canada Economics Weekly Storm clouds gathering in Canada too The housing investment boom may have breathed its last gasp last quarter. With existing home sales floundering and average sale prices dropping, tighter mortgage financing rules and ill-timed interest... 8th September 2017 · 1 min read
Canada Economics Weekly GDP growth bound to slow after blazing pace in H1 Although the real economy grew strongly over the first half of this year, that growth still appears to be overly dependent on the heavily indebted household sector. That arrangement was possible when... 1st September 2017 · 1 min read
Canada Economics Weekly Households still living the high life Household consumption grew very strongly in the second quarter, supported by a further decline in the household saving rate and an acceleration in household borrowing. In the tougher banking... 25th August 2017 · 1 min read
Canada Economics Weekly Canada will be up against it in NAFTA talks Canada’s trade demands heading into the historic NAFTA renegotiations this week didn’t appear to be overly ambitious, in contrast to the much more aggressive approach adopted by the US. Nevertheless... 18th August 2017 · 1 min read
Canada Economics Weekly Supply shortage doesn’t explain high housing valuations Housing bulls argue that the surge in house prices in recent years and the current strength of new home construction are justified by strong population growth in Canada, but the data suggest otherwise... 11th August 2017 · 1 min read
Canada Economics Weekly Economy seemingly unfazed by housing slowdown Despite softening home sales, the incoming data point to solid GDP growth in the second quarter, possibly outpacing the 3.7% q/q annualised rate posted in the first quarter. Needless to say, the... 4th August 2017 · 1 min read
Canada Economics Weekly Higher Canadian dollar no threat to economy The two-month rally in the Canadian dollar, from US$0.73 to US$0.80, doesn’t pose any direct threat to the economy, particularly given the significant decline in the real trade-weighted exchange rate... 28th July 2017 · 1 min read
Canada Economics Weekly Canadian dollar rally likely to fade before year end The rally in the Canadian dollar to a 14-month high of US$0.79, from US$0.74 a month ago, is likely to fade before year end. While higher oil prices might allow a temporary lift in the coming months... 21st July 2017 · 1 min read
Canada Economics Weekly One more interest rate hike at most this year The Bank of Canada’s new-found confidence in the economy and forecast rebound in core inflation have prompted speculation that interest rates might rise much higher this year. But with household debt... 14th July 2017 · 1 min read
Canada Economics Weekly Housing slump going from bad to worse Despite widespread claims by housing pundits that Vancouver’s housing market is recovering from last year’s slump, the incoming data continue to show home sales floundering. More importantly, home... 7th July 2017 · 1 min read
Canada Economics Weekly Bank can’t ignore low inflation The Bank of Canada’s recent hawkishness doesn’t fit with the weaker core inflation data. Amid further warnings from the BIS about the dangers of sticking too closely to inflation targets when asset... 30th June 2017 · 1 min read
Canada Economics Weekly House price inflation set to plunge Housing was top of the agenda at a meeting of federal and provincial policymakers earlier this week, amid signs that the Bank of Canada is perhaps preparing to hike interest rates. Meanwhile, with... 23rd June 2017 · 1 min read
