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.
- Canada’s housing boom is much stronger than south of the border – existing home sales and substantial increases in home price is fueling this. Immigration has now emerged as a primary factor in Canada’s housing demand – a strong recovery of immigration in 2022 could sustain the high demand.
- Canada’s post pandemic recovery will fall short of the U.S. In addition to the slow reopening due to low vaccination efforts, the Canadian consumer has much more debt than their American counterparts, leading to a slower and less powerful economic boom.
- With substantial GDP gains in the first quarter of 2021 and a prediction of consumption-led growth for the second half of the year, the Bank of Canada will move towards normalization – expect to see rate increases in 2022.
- Pandemic disruptions are now being left behind and the U.S. is experiencing their strongest economic growth since 1950 and 1951 – even stronger than the early 80s.
- Inflation worries will get worse in the coming months as there is more evidence of labour shortages – states like Texas have as many job openings as people seeking unemployment benefits. Though, continued productivity gains will quell inflation risk.
- Currently, pandemic related headwinds for international commodity supply will keep prices high. Additionally, the continued downtrend in the trade-weighted USD will keep commodity prices up.
- Brent crude oil will move above $70 per barrel, with the global economic reopening. Expect to see a supply response that will eventually put a price ceiling on oil.
Read The Full Report Here
To help ease the strain COVID-19 is placing on Canadian Businesses, TEC Canada has compiled insights from global experts to support business leaders as they navigate the challenges and opportunities presented. If you would like to receive similar information more regularly, please click here.