TEC Canada is pleased to provide the monthly Andersen Economic Report exclusively to our members to offer professional updates on the current economic environment in Canada, the USA, and globally. As the former assistant chief of the Bank of Canada’s research department, Dr. Peter Andersen provides valuable economic insight to help you make better business decisions.
The weakness of the Canadian dollar could make increasing interest rates ineffective at curbing inflation. This, plus the widespread nature of inflation, will make the Bank of Canada’s forecast of a return to 1%-3% control range by the end of 2023 difficult to reach.
The tight job market will push the already rapidly-rising wage and salary compensation even higher. While companies will put high priority on managing costs, they will continue to spend on IT and digital transformation.
Because of the vulnerabilities of the world’s financial system, it’s possible we could be in for a severe global stall-out. The high debt in many countries, China’s zero-COVID policy, and Russia’s invasion of the Ukraine all contribute to this possibility.