What’s Happening with the Economy in Canada?
Author: Waqas Rafiq
It seems that Canadians never quite know what to expect from their economy. In the past couple of years, especially, the Canadian economy has been all over the place. People are concerned about what might happen next, and the only thing that’s certain is that nobody knows exactly what’s going to happen—but there are some strong indicators about what’s coming in 2016 and beyond. Here’s a look at some of the factors affecting the Canadian economy right now.
There are some good signs
The Canadian economy has been growing steadily for a while now, and it looks like that trend is continuing. Unemployment is down, and wages are finally starting to increase after years of stagnation. Plus, inflation is low and interest rates are still relatively low. All of this is good news for consumers and businesses alike. Lower unemployment means more people have money to spend on goods and services, which will help grow the economy even more. Inflation might be an issue if it starts creeping up too high, but right now everything seems stable. There’s always some concern about the trade war between China and America, but if there’s any lasting impact from that, we probably won’t see it until 2023 at the earliest.
There are some bad signs
After years of being one of the strongest economies in the world, things are starting to look a bit shaky for Canada. Unemployment is on the rise, and consumer confidence is down. Plus, inflation and interest rates are both increasing. This doesn’t mean that the economy is about to collapse, but it does mean that things are heading in a negative direction. Why? Well, there are two possible causes: The first is that all this economic turmoil around the world has finally caught up to us; we’re part of a globalized market now, so what happens in America or China has an effect on our own country. The second possibility is that these high levels of unemployment are because Canadians themselves have lost faith in the future of their own country – they think it might be time to move away from here if they want more opportunities elsewhere.
Here’s what you should do
1. Keep an eye on interest rates. They’re important for both businesses and consumers. 2. Watch for news about the housing market. It’s a good indicator of how confident people are feeling about their finances. 3. Stay up-to-date on employment numbers. A strong job market is a key to a healthy economy. 4. Keep eyes on the stock market news. It can give you a sense of how well businesses are doing overall. 5. Follow developments in the energy sector. It’s a major part of the Canadian economy. 6. Pay attention to trade news. This can impact both imports and exports, and therefore the economy as a whole. 7. Keep an eye on government policy changes.