Weekly Digest- 10 January 2024

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

Canadian dollar ended 2023 on a hot streak but don’t expect the momentum to last

The Canadian dollar ended 2023 on something of a hot streak, but will be hard pressed to keep up the momentum in the new year as headwinds gather and fundamentals favour the greenback, currency analysts say.

December’s jobs report is a ‘mixed bag’ for the Bank of Canada

The national jobless rate held steady at 5.8 per cent in December as employment was “virtually unchanged,” according to Statistics Canada. The labour force report shows a 5.4 per cent jump in average hourly wages for December, up from 4.8 per cent in November, the fastest pace for wage gains in more than a year. The Bank of Canada has previously flagged that wage growth in the realm of four to five per cent is not consistent with achieving its two per cent target without associated gains in productivity.

Foreign travellers are still spending in Canada, but domestic tourism slowed in Q3

Canada’s tourism sector grew in the third quarter thanks to spending from foreign tourists that more than offset a decline in spending by Canadian travellers, data from Statistics Canada shows.

Soft housing market expected for 1st half of 2024, but only in some parts

The Canadian housing market is expected to remain soft at least for the first part of 2024 while interest rates remain high. But some parts of the country will see busy markets as investors look for lower prices outside of Toronto and Vancouver, forecasters say.

The Bank of Canada needs to avoid this mistake in 2024, says CIBC

Central banks took a lot of flack for being slow to hike interest rates as inflation took off. Now a CIBC economist says they should be wary of mistakes coming down the other side.

What does 2024 have in store for the Canadian economy?

It’s been a long time since economic data in Canada showed very much promise. The last 18 months have been defined by a cost of living crisis and a slowing economy. But a handful of economic indicators give us some hope for 2024.

Canada’s economy is still struggling to grow, fresh GDP data shows

Canada’s economy is still struggling to grow heading into the end of the year after contracting in the third quarter of 2023, according to Statistics Canada. Real gross domestic product (GDP) for October was “essentially unchanged” for a third consecutive month, the agency said.

Debt levels mean Canada’s recovery could lag other advanced economies: report

Canada’s economy is largely expected to rebound this year, but a recent report suggests Canada could fare worse than similar countries in 2024 due to high levels of household debt.

Canadians are losing faith in the economy — and it’s affecting their perception of inequality

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