Andersen Monthly Economic Report – October 2018

November 6th, 2018|Insights|
  • Peter Anderson Monthly Economic Report

TEC Canada is pleased to provide the Anderson Monthly Economic Report exclusively to our members. 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.

REPORT SUMMARY

The U.S. economy remains strong and continues to expand despite stock market trends forecasting a recession. The tariff battle between the U.S. and China appears to be negligible on the U.S. economy; however, if the U.S. negotiates an end to its tariff war, this would further boost outlook on Canada’s economy.

CANADA

  • While changes from USMCA are described as “cosmetic,” it has eliminated tariff uncertainty and improved investor confidence in Canada.

UNITED STATES

  • Economists believed that the stimulus in the U.S. would cause overheating and disruptively high interest rates, but that is not happening; the U.S. economy continues to exceed expectations with U.S. consumers as the main driver.

INTERNATIONAL

  • Five primary investors (Royal Dutch Shell, Mitsubishi, Petronas, PetroChina and Korean Gas) announced they will be moving forward with the Kitimat LNG project*. This project is expected to have a positive impact on capital spending as early as next year.

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*The Kitimat LNG project, which will provide natural gas to overseas customers from Kitimat, B.C., is Canada’s largest private-sector project to date. The project is expected to generate roughly 10,000 jobs by 2021 and be a boon for Canada’s economy. Additional resources on the Kitimat LNG project:

> After ‘many ups and downs,’ Kitimat residents brace for boom with LNG megaproject
‘Dream scenario’: Two more Canadian LNG projects inching towards construction
> B.C. LNG project could create ‘gold rush’ for Alberta petrochemical industry