Business Update – 7 September 2023

09/07/2023 | Bizink

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

Canada’s economy contracted during 2nd quarter, StatsCan says

The Canadian economy appeared to stall in the second quarter as investment in housing continued to fall, led by a drop in new construction. Statistics Canada said Friday the economy contracted at an annualized rate of 0.2 per cent in the second quarter.

Economists see Bank of Canada holding on rates after surprise GDP contraction

Economists say the latest GDP data from Statistics Canada showing a contraction in the economy suggests the Bank of Canada’s rate hiking campaign may be coming to an end.

Will Trudeau’s government breach the David Dodge Rule?

Global interest rates have been marching higher all summer, with bond yields up almost a full percentage point since April in both the U.S. and Canada to levels not seen since 2007. This poses a problem for the federal government, whose heavy borrowing over the past three years was premised on the idea that interest rates would remain at historically low levels.

Why it’s so much cheaper to ship stuff from China than within Canada

It can cost up to 5 times more to ship from Canada to China, thanks in part to the Universal Postal Union.

Governments of Canada and Ontario invest $219 million in high speed internet access for Eastern Ontario

The governments of Canada and Ontario announced a combined investment of C$219 million to bring high-speed internet access to more than 66,000 households in over 300 Ontario communities, including more than 600 Indigenous households.

Small business confidence stays weak and the list of challenges long

The share of businesses reporting that insufficient domestic demand is dampening their growth has reached 40%, the highest point since February 2021, according to the latest Canadian Federation of Independent Business (CFIB) Business Barometer®.

China slowdown may help Canada’s inflation fight

Jimmy Jean, chief economist at Desjardins Group, speaks with the Financial Post’s Larysa Harapyn about China’s slowing economy and its impact on the global economy and also explains how China could help the Bank of Canada tame inflation.

Union members boost the benefits of organized labour, but almost 40% say membership costs exceed gains

A new study from the non-profit Angus Reid Institute dives deep into perceptions of labour unions, finding a nation with competing views about the value and cost of organized work in Canada, among union members and non-members alike.

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