National Newswatch

Canada Inflation Target Under Review as Prices Undershoot

Aug 21 2017 — Theophilos Argitis — Less than a year since completing the last review of its inflation-targeting mandate, the Bank of Canada is starting to prepare for the next one in 2021. Consultations kick off in Ottawa on Sept. 14 with an invitation-only workshop of economists that will be webcast on the central bank’s website. It’s an early public start […]

Canada Is the G-7’s Surprise Growth Leader, For Now

Apr 17 2017 — Theophilos Argitis — Almost out of nowhere, Canada has become one of the fastest growing economies in the developed world. The oil-producing nation, which struggled mightily with falling crude prices the past two years, grew at an annualized pace of almost 4 percent in the first quarter, according to the Bank of Canada’s latest estimates. No other Group […]

Trudeau’s Budget Math Doesn’t Add Up on Export Growth

Mar 27 2017 — Theophilos Argitis — There’s something peculiar with a key performance goal in Prime Minister Justin Trudeau’s last budget. In a fiscal plan released Wednesday by Finance Minister Bill Morneau, the governing Liberals outlined a new growth strategy focused on skills training and innovation, and set out “clear and ambitious targets” to gauge the success of the program. One […]

Trudeau to Make Case That Growth and Redistribution Can Co-Exist

Mar 22 2017 — Theophilos Argitis — Prime Minister Justin Trudeau will try to convince Canadians he’s just as good at generating growth as he is at handing out checks. Bill Morneau, his finance minister, releases a budget at 4 p.m. Ottawa time that will address the country’s lackluster economic performance, and will lay out how the Liberals, who came to power […]

Take Time Selling Canada to Trump, Departing Envoy Tells Trudeau

Jan 16 2017 — Theophilos Argitis — President Barack Obama’s outgoing envoy to Canada has some guidance for Prime Minister Justin Trudeau in dealing with the new Trump administration: Don’t assume anything. “If I was going to give one piece of advice,” U.S. Ambassador Bruce Heyman said in an interview with Bloomberg, it would be that “whenever you are working on a […]

Trudeau’s Finance Chief Will Get Good Pre-Budget News This Week

Jan 11 2017 — Theophilos Argitis — Finance Minister Bill Morneau will hold his pre-budget meeting with private sector economists Friday, where he’ll be told that an improving economy will help stabilize Canada’s finances. The finance department’s survey of economists will paint a picture of national income and revenue that is almost exactly what was expected in the Nov. 1 fiscal plan, […]

Trudeau’s Plans Prove Key to Poloz’s Messaging on Interest Rates

Oct 26 2016 — Theophilos Argitis — Will he cut or not? Investors are complaining Bank of Canada Governor Stephen Poloz has been sending mixed signals about his interest-rate plans, sowing uncertainty by speaking about the need for stimulus while at the same time highlighting the problems with adding stimulus. The Canadian currency has see-sawed over the past week as traders try […]

TD Expects Canada to Run Bigger Deficits Than Trudeau Budgeted

Oct 13 2016 — Theophilos Argitis — Canada will run larger deficits than Prime Minister Justin Trudeau’s government has projected amid a weakening revenue outlook, limiting its scope for additional spending measures, according to a report from Toronto Dominion Bank. The country is on track to run a deficit of C$34 billion ($25.7 billion) in the current fiscal year, almost C$5 billion […]

Trudeau’s New Child Benefits Worth Extra $300 Million in July

Sep 30 2016 — Theophilos Argitis — The Canadian government released the first bit of data on its new child benefits, showing an increase of about C$300 million ($229 million) the month the program was first rolled out. Spending on children’s benefits was C$1.84 billion in July, the finance department said in its monthly fiscal release Friday. That compares with C$1.54 billion […]

Trudeau, Handcuffed by Dismal Growth, Set to Tap Budget Reserves

Sep 29 2016 — Theophilos Argitis — Prime Minister Justin Trudeau’s fiscal leeway is shrinking just as demands for spending are beginning to mount. The finance department has completed its latest survey of private sector economists and the numbers paint a worsening picture for national income and revenue. Compared with forecasts they gave for the March budget, the economists project almost C$50 […]