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.
November 2023 PREVIEW:
Canada |Bank of Canada’s Optimism Amid Doubts: Inflation, Rate Hikes, and U.S. Economic Impact
Despite the Bank of Canada’s positive outlook on the efficacy of its past rate hikes and the increase in bond yields in addressing demand and inflationary pressures, doubts continue to linger. This skepticism is fueled by the bank’s track record of inaccurate inflation forecasts. Additionally, the strength of the U.S. economy, which stands as Canada’s largest trading partner, remains a significant factor, leaving room for consideration of potential further rate hikes to navigate this complex economic landscape.
United States | Strong 3rd Quarter Growth Exceeds Expectations, Fuels Inflation Worries
The 3rd Quarter’s official estimate, released on October 26th, surpassed expectations with a strong annualized growth rate of almost 5.0%. This impressive performance was primarily driven by a surge in consumer demand for goods and services. However, the significant growth, fueled by increased consumer spending and expanded inventories, is putting additional strain on supply chains and heightening worries about inflation.
Global Economic Outlook | 2024 Economic Prospects: Oil Price Volatility and China’s Economic Challenges
The economic outlook for 2024 is intricately tied to oil prices, with cautious assumptions of stability around $90 for Brent and $85 for WTI. However, the potential for a prolonged Middle East conflict remains a factor that could drive oil prices higher, injecting an element of uncertainty. Concurrently, China’s economic prospects have dimmed due to property sector issues and reduced export demand, resulting in a projected growth rate of just 4.5% for the year, signaling an extended period of economic challenges for the country.
Excited to delve into the full November 2023 Andersen Economic Report? As a valued member of TEC Canada, you can access the complete report under the ‘Resources’ section of the TEC Canada App!
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