Canada not immune from faltering global development, says IMF chief economist & More Trending News

Canada not immune from faltering global development, says IMF chief economist & More Trending News

The chief economist of the International Monetary Fund says Canada is going through lots of the similar challenges — excessive inflation, lacklustre development and anxious monetary markets — which can be dragging down the global financial outlook.

“The Canadian economy has been doing well in the rebound, but it’s buffeted by the same winds that are affecting the global economy,” stated Pierre-Olivier Gourinchas in an interview on Rosemary Barton Live airing Sunday.

The IMF says the world is experiencing “a broad-based and sharper-than-expected slowdown” with development anticipated to sluggish to 2.7 per cent subsequent yr, down from 3.2 per cent this yr. The UN monetary company tasks the Canadian financial system will develop by simply 1.5 per cent.

“There is a slowdown in the US that is coming. Commodity prices, energy prices are coming down. There are all the uncertainties, financial tightening and financial markets are very nervous. All of these factors are going to weigh down on on the Canadian economy next year,” Gourinchas advised CBC chief political correspondent Rosemary Barton.

WATCH | IMF chief economist discusses financial outlook:

Canada’s financial system will expertise a ‘slowdown’, IMF chief economist warns

Rosemary Barton Live speaks with IMF Chief Economist Pierre-Olivier Gourinchas about Canada’s financial system and the global financial forecast. Gourinchas says inflation charges might come down however will nonetheless be excessive, and that global development will decelerate. ‘Elevated inflation, low development is not a mix that feels good,’ he says.

The IMF’s projections are simply the most recent in a sequence of gloomy assessments from financial consultants lately. Former Bank of Canada governor Mark Carney advised the Senate finance committee Thursday Canada would doubtless fall right into a recession subsequent yr — although he famous this nation ought to fare comparatively properly.

Deputy prime minister and finance minister Chrystia Freeland has additionally warned of darkish clouds on the horizon.

“There are still some difficult days ahead for Canada’s economy. To say otherwise would be misleading,” she stated Wednesday.

And on Friday, Prime Minister Justin Trudeau additionally nodded to the prospect of an unsure financial future. He emphasised the passage of a number of focused measures — such because the GST tax credit score increase handed Tuesday — to assist blunt the impact of inflation on some Canadians. But he acknowledged many have been going through a problem.

“That’s why remaining fiscally responsible and measured in our response is essential, because we have to prepare for whatever might come in the coming weeks and months,” he stated.

Food costs outpace headline inflation

Central banks world wide have responded to rising inflation by ratcheting up rates of interest. That’s a part of the mission of preserving costs below management, Gourinchas stated, however it will sting economies.

“In the context in which the economy is already slowing down because of the uncertainty and the shocks that are hitting the global economy, it is going to make it that much more painful,” he stated.

He warned that because the financial system slows, unemployment will rise, although job losses would “hopefully remain fairly modest.”

The price of residing has been a serious focus for the federal government’s political opposition, attacking what they describe as a sluggish and ineffective response to inflation.

“Unfortunately, the prime minister is proposing to do exactly nothing for the vast majority of struggling families, which will get nothing, and even the small minority that do get something will find it gobbled up by increased inflation,” stated Conservative Leader Pierre Poilievre earlier this week.

The NDP have blamed some inflation on company greed, and handed a movement — with unanimous all-party help —  to look into rising meals costs.

The price of meals has outpaced the official fee of inflation, rising greater than 11 per cent since this time final yr.

WATCH | StatsCan head discusses rising costs:

Crunching the numbers: How does the inflation fee impression Canadians?

Statistics Canada Chief Statistician Anil Arora speaks with Rosemary Barton Live on the nation’s present inflation fee and explains the place Canadians are feeling the impression most.

“We haven’t seen this kind of increase year over year since 1981,” stated Anil Arora, chief statistician for Statistics Canada, in an interview on Rosemary Barton Live Sunday.

Arora stated information reveals inflation is having a major impact on these with mounted incomes, comparable to seniors.

“It is worrisome. You can see it and the numbers do show it,” he stated.

Gina Kokoska, who lives in Nova Scotia, advised Barton on Sunday that she needed to minimize her maternity depart quick to return to work with the intention to sustain with rising prices, and have been making an attempt to chop bills wherever they may

“We’re coming into winter now and the cost of heating is exorbitant … we might be wearing a lot more sweaters this year.”

Canada not immune from faltering global development, says IMF chief economist

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Canada not immune from faltering global development, says IMF chief economist

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Canada not immune from faltering global development, says IMF chief economist

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