TEC Canada is pleased to provide the Andersen Monthly 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.
December 2024 PREVIEW:
Canada | Economic Struggles Persist | Bank of Canada to Cut Rates | Spring Rebound Expected in 2025
Canada’s economy is struggling, with weak GDP growth, declining business investment, and stagnant housing markets, prompting expectations of further Bank of Canada rate cuts to drive recovery. A spring rebound in housing and GDP growth of nearly 2% in 2025 are expected, supported by lower U.S. Treasury yields and potential regulatory changes.
United States | Election and Tariff Talks | Policy Shifts Ahead | Inflation Stabilizing at 3%
The election results and Trump’s tariff announcements are top of mind for the U.S., though worst-case scenarios are unlikely. His political agenda could introduce significant changes for the U.S. in regulations, government policies, currencies, and incentives. A mild inflation increase is forecasted for 2025, potentially stabilizing at a new normal of 3% for the U.S. economy.
Commodities | Tariff Uncertainty and Strong USD | Rising U.S. Natural Gas Prices | LNG Expansion by 2025
Tariff uncertainty, a strong USD, and a weak Chinese economy are pressuring commodities, while U.S. natural gas prices rise on domestic factors and a tight winter supply-demand outlook. Limited LNG capacity will expand by 2025, positioning the U.S. to meet strong global demand, with current gas prices far below European benchmarks.
Excited to dive into the full December 2024 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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