Weekly Digest – 15 May 2024

Welcome to our Weekly Digest – stay in the know with some recent news updates relevant to business and the economy.

Economic snapshot – Canada – slow growth, but a glimmer of optimism

Canada’s soft domestic performance and elevated inflation continue to slow advances. After having the slowest post-pandemic growth of just 1.1.% last year, the country faces another year of below-average growth, caused by indebted households, cautious consumers and high borrowing cost.

Bank of Canada says financial system is stable, but risks remain

The Bank of Canada says the Canadian financial system is stable, but risks remain due to debt servicing costs among households and businesses and stretched valuations of financial assets.

Proposed changes to Canada’s Competition Act could kneecap our already faltering economy

The recent federal budget was widely panned – in particular by the entrepreneurial class – for its proposal to raise the capital gains inclusion rate. As it turns out, “soak the rich” might sound like clever politics (it’s not) but it’s definitely a poor narrative if your goal is to incentivize and encourage risk-taking and investment, says Aaron Wudrick, Domestic Policy Director at the Macdonald-Laurier Institute.

Canadian economy loses steam after strong start to year

The Canadian economy lost momentum after a roaring start to the year, reinforcing economists’ expectations that the Bank of Canada is on track to cut interest rates in the coming months.

Chamber of Commerce and Business Associations letter to Minister Freeland on Capital Gains

The letter addresses concerns with recently announced changes to taxes on capital gains.

New investment agreement expected to boost B.C.-Taiwan partnerships

Last year’s signing of the Foreign Investment Promotion and Protection Agreement (FIPA) is expected to bring Canada and Taiwan closer in economic partnerships, according to experts.
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Opening Statement before the Standing Senate Committee on Banking, Commerce and the Economy

Tiff Macklem delivered an address re recent policy announcement and the Bank of Canada’s Monetary Policy Report.

Sellers re-entering the housing market, buyers continue to be constrained

Canada’s major housing markets are starting to recover, but one economist says a more pronounced recovery cannot be sustained until interest rates move significantly lower.

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