Total Active Cases
(Bloomberg) -- Canada’s economy is showing surprising strength as businesses stock up on inventories in anticipation of a super-charged recovery this year.Gross domestic product expanded at a 9.6% annualized rate in the fourth quarter, according to a preliminary estimate released Tuesday by Statistics Canada in Ottawa. That’s much faster than the 7.3% median forecast in a Bloomberg survey. A flash estimate from the agency showed GDP on track to grow 0.5% in January, defying expectations for a contraction to start the year.The numbers highlight how well the nation’s economy handled the latest wave of lockdowns, resilience that’s stoking expectations for a strong rebound in 2021 after the nation suffered its sharpest downturn in the post-World War II era.“It’s inconceivable someone isn’t going to revise up their forecasts based on what’s happening,” Jean-Francois Perrault, chief economist at Bank of Nova Scotia, said in a phone interview. Perrault said he will be lifting his 5.3% growth forecast next week, with other major banks expected to follow suit.Bank of Montreal isn’t wasting time, predicting a 6% expansion. That’s up by a full percentage point from its previous forecast and would mark the fastest growth since 1973.The Canadian dollar pared losses after the report, and was trading little changed at C$1.265 per U.S. dollar at 10:29 a.m. in Toronto. Yields on Canadian government five year bonds were up one basis point to 0.83%.What Bloomberg Economics Says...“At nearly every stage of the recovery, Canadian activity has proven more resilient than expected. The combination of strong household fundamentals, an impending rebound in job growth, and resolute fiscal support mean a strong pickup is still in store in 2021 and 2022.”-- Andrew Husby, economistFor the full report, click hereThe biggest contribution came from businesses rebuilding inventory levels after two successive quarters of drawing down stocks, a sign companies are bracing for a pick-up in demand. That helped offset a very weak end of the year for consumer spending, which recorded an unexpected drop amid a wave of Covid-19 restrictions.Consumers have been hoarding cash. While the household savings rate declined to 12.7% in the fourth quarter, from as high as 27.8% earlier this year, it’s still historically elevated. That will provide a source of pent-up demand that bodes well for future growth.“The expenditure composition isn’t that great, with most of the add to growth coming from inventories,” Nathan Janzen, an economist at Royal Bank of Canada in Toronto, said by email. “But hard to view this report as anything other than positive relative to prior expectations.”Other major contributors to growth at the end of last year included government consumption and housing investment, driven by a hot real-estate market. Non-residential business investment remains a bit anemic, gaining 4.2% on an annualized basis.For all of 2020, Canadian GDP shrank 5.4%. That’s a bigger hit than in the U.S., which recorded a 3.5% drop in output.The downturn was limited to a 38.5% annualized contraction between April and June, followed by a 40.6% expansion in the third quarter. Output in the fourth quarter was 3% below pre-pandemic levels.While the data will be welcome by policy makers, it raises another question: is there already enough stimulus in the economy. Prime Minister Justin Trudeau has said he wants to keep the spending taps open for the next few years on the grounds the economy will need continued support.The Bank of Canada will also need to acknowledge a better outlook, potentially pulling forward the timeline for paring back monetary stimulus. Policy makers led by Governor Tiff Macklem will set rates next week, but a full set of new forecasts isn’t due until April.“They’ll have a more positive message because the reality is things are better than everyone thought a few weeks ago,” Perrault said. “They’ll have to reflect that in their statement for sure.”(Updates with details throughout.)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.
Canadian mortgage rates are beginning to inch higher for the first time since before the COVID-19 crisis, reflecting the spike in long-term bond yields, but with home loans still languishing around historically low levels the modest hike is unlikely to slow the red-hot housing market. The lowest rate for a Canadian five-year fixed rate mortgage, the most common mortgage in Canada, climbed by 25 basis points last week to 1.64%, according to Ratehub.ca. Mortgage rates had been trending lower in Canada since the Bank of Canada slashed its benchmark interest rate last March to a record low of 0.25% to support the economy during the pandemic.
* Canadian dollar rises 0.6% against the greenback * Canada's current account deficit narrows to C$7.3 billion * Price of U.S. oil increases 0.9% * Canadian bond yields rise across much of the curve TORONTO, March 1 (Reuters) - The Canadian dollar rose against the greenback...
We want to bring your attention to the flexible mesures adopted by the Commission des normes, de l'équité, de la santé et de la sécurité du travail's concerning the management of occupational injury files in matters of costs assignment.
As the United States moves rapidly to vaccinate senior citizens and other vulnerable Americans against the coronavirus, older Canadians are watching enviously, aware that most of them are unlikely to receive their own shots until sometime this summer. The delay is beginning to cause political problems for the government of Prime Minister Justin Trudeau, which had received high marks earlier in the pandemic for its efforts to contain the pandemic, keeping infection rates much lower than those in their southern neighbor. According to Our World in Data, a research website used by U.S.
The coronavirus pandemic is forcing President Joe Biden to alter another first for his administration: the typically formal White House meeting with a foreign counterpart. Biden will play host to Canadian Prime Minister Justin Trudeau on Tuesday for the first bilateral meeting of his presidency, but he will do it virtually.
Last Friday (29 January 2021), the European Commission announced the implementation of a new export regime for COVID-19 vaccines. This regime came into effect on 30 January 2021 and is deemed temporary as it is scheduled to lapse on 31 March 2021. The accompanying Commission Implementing Regulation (2021/111) contains provisions mandating information disclosure by COVID-19
Canada has fallen behind many of its wealthy nation peers in its efforts to vaccinate the population. But the efficiency of the vaccine rollout isn't the only measure of a country's pandemic experience — and according to other measures, Canada has fared relatively well.
March 21st will mark a full year that the Canada-U. S. border has been closed to all but essential traffic during the COVID-19 pandemic. The Canada-U.S. border is the largest undefended boundary in the world at 8,891 kilometers. There are 117 legal points of entry that have been closed to tourist and personal, or “nonessential" travel, for almost a year, resulting in an 80% drop in border traffic. For generations, travelers from both countries have easily crossed the border for vacations, shopping trips and other excursions. That all stopped last March with the spread of the coronavirus.
Tonight's Raptors game against Chicago has been postponed due to COVID-19 health and safety protocols. A statement from the NBA says that because of positive test results and ongoing contract tracing, the Raptors don't have the league-required eight available players.
Canadian provinces and territories continue to respond to different challenges posed by the pandemic. Travellers have obligations under both federal and provincial orders. Employers across different provinces or territories may find that their workforces face different prospects for vaccines.
Canada's COVID-19 vaccination campaign is ramping up after earlier supply disruptions and the number of inoculations last week hit a five-week high, officials said on Thursday. Canada has deals with Pfizer Inc and Moderna Inc , but both companies ran into production problems last month and reduced shipments. The country trails many other nations in the total number of inoculations and critics accuse Prime Minister Justin Trudeau's Liberal government of bungling the rollout.
The rapid spread of more contagious coronavirus variants across Canada has led some hard-hit regions to question whether national public health guidelines go far enough to protect Canadians — and they're sounding the alarm over the dangers of just minutes of exposure.
Problems at AstraZeneca Plc's European production site in January kicked off a six-week push to get a version of its COVID-19 vaccine made at an Indian facility approved by Canada's drug regulator, according to the Canadian pharmaceutical company that filed the application.
Covid-19 has not deterred Canadian-based Arc’teryx, a design-focused retailer of outerwear, from opening three locations in the city. In fact, it may have helped, as falling demand brought down leasing prices. “New York is so important for us in the U.S. and on a global stage,” said Megan…
AstraZeneca’s Covid-19 vaccine has had a bumpy ride, but the prominent drugmaker is ready to start supplying their shots to COVAX. The first doses of the AstraZeneca/Oxford vaccine were shipped to Ghana and Cote D’Ivoire, AstraZeneca announced Tuesday, with more set to begin arriving this week in the Philippines, Indonesia,
Canadian trucking associations have stood up against potentially mandatory COVID testing for truck drivers at the Canadian-US border due to concerns over shipping delays and access to the required technology. Currently, non-essential travelers must provide proof of a negative COVID test within the last 72 hours in
U.S. President Joe Biden meets virtually Tuesday with Canadian Prime Minister Justin Trudeau, marking Biden’s first bilateral meeting with a foreign leader since taking office last month. The two leaders are set to discuss China, climate change and other issues, according to a Biden administration official who spoke to reporters anonymously, as they try to reset relations that soured during Donald Trump’s four years as U.S.