Increasing consumer debt and rising interest rates worrisome

Rising rates will lead to less consumer spending and impact Canada’s economy and business growth

Increasing consumer debt and rising interest rates worrisomeRising interest rates combined with near record high consumer debt levels are expected to increase the number of Canadian consumers who will be forced into insolvency over the next year, warns the Canadian Association of Insolvency and Restructuring Professionals (CAIRP). The association says historically there has been about a two-year lag between the time interest…

Is the ‘shale revolution‘ already winding down?

The efficiencies of shale exploitation technology may be sowing the seeds of a rapid decline

Is the ‘shale revolution‘ already winding down?Calgary’s Business and Troy Media are pleased to welcome Brad Hayes to our roster of contributors. Brad is president of Petrel Robertson Consulting Ltd., a geoscience consulting firm addressing technical and strategic issues around conventional and unconventional hydrocarbon exploration and development. He earned a PhD in geology from the University of Alberta, and a BSc…

Canadian executives taking a pause on M&A activity

Confidence is there, but deal intentions are lacking

Canadian executives taking a pause on M&A activityCanadian executives are feeling optimistic about the country’s economy – as well as the global economy – but they’re not that keen on making acquisitions, says a new report released Tuesday by EY. The 19th edition of the Global Capital Confidence Barometer found that 73 per cent of Canadian executives see corporate earnings as improving…

Farmers pay a high price for the convenience of consumers

The further food moves from the farm, the more the profit is diluted. Unless farmers can sell directly to consumers, they'll fall back

Farmers pay a high price for the convenience of consumersCanadians are spending more on food prepared and often consumed outside the home, but our pursuit of convenience may be costing farmers. According to some surveys, about 35 per cent of the average Canadian’s food budget is spent on food prepared outside the home. This is nowhere near what Americans spend on out-of-household food, which…

Bombardier slashing 5,000 jobs

Massive restructuring program also includes sale of non-core assets and new emphasis on technology

Bombardier slashing 5,000 jobsMontreal-based Bombardier, an aerospace and transportation giant in the industry, announced on Thursday that it was slashing 5,000 jobs from its global workforce. In a news release reporting its third quarter financial results, the company said the reduction in staff will take place across the organization over the next 12 to 18 months, “leading to…

Canadian trade deficit narrows

Import volumes decreased 1.5% while prices rose 1.1%: StatsCan

Canadian trade deficit narrowsCanada's merchandise trade deficit with the world narrowed to $416 million in September from $551 million in August, as imports fell 0.4 per cent while exports edged down 0.2 per cent, according to Statistics Canada. “Total imports fell 0.4 per cent to $50.8 billion in September, despite gains in six of 11 product sections. Import…

Canada lacks competitive edge to compete with the U.S.

Canadian governments have failed to offer any significant strategies to keep the country competitive

Canada lacks competitive edge to compete with the U.S.Say you’re a store owner and your competitor across the street offers everything at lower prices, with higher quality and a friendlier attitude. You’re in trouble. If your competitor was on the other side of the city, things might be a bit better. But across the street? That’s roughly where Canada finds itself in relation…

Good news for the Canadian economy

Real GDP rose for the seventh consecutive month, led by oil and gas extraction

Good news for the Canadian economyThere was good news for the Canadian economy on Wednesday. Statistics Canada reported that real gross domestic product rose for a seventh consecutive month, edging up 0.1 per cent in August as growth was concentrated in oil and gas extraction and finance and insurance, which more than offset declines in 12 of 20 industrial sectors.…

Canadian freight rail volume jumps in August

StatsCan says fuel oil and crude petroleum shipments led the way

Canadian freight rail volume jumps in AugustThe volume of rail freight carried in Canada totalled 33.1 million tonnes in August, up 7.7 per cent  from the same month a year earlier, according to Statistics Canada. The federal agency reports that freight originating in Canada rose 7.7 per cent year over year to 29.6 million tonnes in August. “Non-intermodal freight increased by…

Canadian businesses becoming increasingly innovative

Evident in all four types of innovation: product, process, organizational and marketing

Canadian businesses becoming increasingly innovativeA new report released Tuesday by Statistics Canada says Canadian businesses are becoming more innovative. The federal agency said the number of innovative enterprises increased 12.5 points to 79.3 per cent in 2015-2017, up from 66.8 per cent in 2007-2009 and 63.5 per cent in 2010-2012. “This greater propensity to innovate by Canadian businesses may…

Runaway trains of deficits and demographics put economy in peril

Growing federal deficits, aging population put extraordinary pressure on Canada’s growth potential

Runaway trains of deficits and demographics put economy in perilBy Jason Clemens, Jake Fuss and Milagros Palacios The Fraser Institute Two fiscal freight trains are hurtling towards the finances of the federal government, threatening the country’s economic well-being and thus the economic prospects of average Canadians. One of these freight trains – deficits – was purposeful. The other – demographics – has been known…

Government debt will worsen the next recession

Governments around the world will go into the next recession with fewer economic management tools at their disposal

Government debt will worsen the next recessionGovernment deficit and debt numbers in Canada are rising due to accounting changes made to better reflect the true nature of government liabilities. Ontario recently revised its deficit and debt projections (based on advice from its auditor general) to better reflect the true costs of pension liabilities and its electricity programs. And because of the…

Wake up Canada, you have a business investment crisis

There’s been no growth in years in the corporate assets that help make companies more efficient and profitable

Wake up Canada, you have a business investment crisisCapital investment is the lifeblood of economic growth and, therefore, of higher living standards. So the collapse of business investment growth in Canada in recent years is cause for alarm. Increased capital, both tangible (machinery, equipment) and intangible (software, for example), boosts the productivity of workers and enables organizations to produce new products and implement…

Canada’s public sector is getting fatter, and that’s bad news

Instead of climbing out of debt, federal and provincial governments are spending more, to the detriment of the economy

Canada’s public sector is getting fatter, and that’s bad newsRecent employment data from Statistics Canada shows a troubling trend. In July, the ratio of private sector to public sector employees (excluding the self-employed) dipped to lows that – except for the period of massive ‘stimulus’ spending by the federal and provincial governments in 2009-10 – have not been seen since Canada’s fiscal crisis of…

Canadian tourism industry booming

Tourism in the first six months of this year directly accounted for more than $18 billion of Canada's GDP

Canadian tourism industry boomingCanada's tourism industry is booming and the federal government says it’s having its best year ever. Tourism activities in the first six months of this year directly accounted for more than $18 billion of Canada's gross domestic product, an increase of more than six per cent over the first half of 2017, said the federal…
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