What’s the road to economic recovery for Canada, the U.S. and across the globe? Discover below. TEC Canada is pleased to provide the Andersen 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.
- New infections will cause Canada’s economy to continue to decline in the first quarter of 2021.
- Regionally, BC will benefit from growth in the US and China and the Alberta economy will begin to stabilize from rising oil prices.
- The stay at home lifestyle has increased the demand for home ownership. Though, supply issues continue to be a major problem, driving up the price for single-family homes.
- Growth in 2021 is expected to be similar to the 83-84’ recovery. There will be a 6-quarter stretch of high economic growth beginning in the Spring.
- Business investments is making a surprising contribution to economic growth. The strength in business capital spending is in machinery and equipment.
- There will be a shift from spending on goods to spending on services that were denied under stay at home restrictions. This is important to note as Americans hold approximately $1.5T of forced saving.
- The global economy is already stronger than thought possible a few months ago and is poised for a multiyear recovery. China is fully recovered and number of oil importing emerging market economies show stronger than expected economic activity.
- With global risk of economic collapse subsiding, there is less need for the safe haven of the USD. This means the rebound in ‘risk currencies’ – such as the Australian dollar and CAD have further to go.
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