Economic Outlook For New Brunswick

The Canadian economy today is at an all-time high with higher economic growth and rising GDP Canada is seeing great changes in the economy. The GDP increase by 1.1 percent in just the first 3 months of 2017. Canada is quickly recovering from the decline in oil prices that significantly slowed down the growth of the Canadian GDP. Because oil plays such a major role in the Canadian economy this had a huge tole on the overall GDP of this country. But, as the country approaches an increased GDP the energy sector does not seem to be hindering the GDP any longer. With the price of oil and gas going back up this has significantly increased the GDP of Canada due to the large amount of petroleum that Canada produces.

There is a real separation between the outstanding material resource created by the Canadian economy and the increasing monetary weakness of Canadians. we must always create conclusive move to build a certifiable economy that benefits all Canadians over the long-term.

One of the most pressing issues faced by Canada today is unemployment. In fact, reports confirm that the jobless rate continues to increase every year. As of February this year, the unemployment rate was at 7.0%. The presence of unemployment rate is evident in various provinces. In Quebec, the number of people working declined by 26,000 in February. Alternately, the number of employed in British Columbia fell by 10,000; while Saskatchewan nearly 6,000 individuals are unable to find jobs. The Conference Board of Canada projected that the country’s labour woes could reach to more than one million workers by 2020. In addition to this, experts predict that the unemployment rate in this country will surpass that of the United States. Along with the dismal figures and projections, the problem of unemployment consequently creates numerous negative consequences on the nation’s economy, its government, and of course its people. Some of the known effects of unemployment include reduced spending power, an increase in financial cost, recession, and even crimes and violence. Individually, long-term unemployment may result to depression, loss of self-respect, and strained relationships with family and friends – ultimately causing damage to the person’s overall well-being. The adverse effects of unemployment only show that this issue imposes a significant cost both on a national and individual level. As such, it is of primary importance to create an immediate plan of action to alleviate

c) In a recession, the Bank of Canada will conduct an open market purchase to lower the interest rate. The quantity of investment will increase, and other interest-sensitive expenditure items will also increase. With an increase in aggregate expenditure, the multiplier increases aggregate demand, bringing real GDP to equal potential GDP, and a recession will be eliminated.

The unemployment rate for March 2016 is at 7.3% compared to 6.6% in 2014. With the rising unemployment rate, people looking for jobs will have a much more difficult time. People will be looking longer for jobs and will not be receiving a salary to pay for costs of living. Right now, each month the unemployment rate climbs by 0.4%. This results in a loss of 35,700 jobs per month. Chapter six of Dinner Party explains the inflation costs. We can relate this to the inflating cost of living and the rising unemployment rate. Canada needs to change quick, as 35,700 jobs lost each month is not good for people trying to support

The weak economic growth in Asia ad in Europe has helped in benefiting Canada and the US. Asia and Europe had also faced deflationary pressures which were caused by the changes in the rates of interest rates in the economy. The risk of the inflationary pressure in the US led to the increasing concern of the federal reserves. The Canadian bonds have been trading at a considerably lower yield as compared to the US bonds in the market. The situation was supposed to be maintained if the Canadian dollars in the economy appreciated relatively to those of the US dollars in the economy. The outlook for the bonds in the economy looked to be very attractive an aspect which was attributed to the changes in

This survey was introduced to observe the way society lives in today's world, and how they live paycheck to paycheck. The Canadian Payroll Association had a conclusion after this survey that most Canadians are not happy with the way they live. Because of the weak economy, Canadians believe that they are not going to be able to retire at an early age, there just won't be any money saved. Statistics prove that the economy in the housing market is the biggest factor most families face in today's world because society dictates that we need things in life to survive. People are living above their means, and that’s why the credit card companies are getting richer.

According to Staff review of the Economic Situation for January 28-29, the economic growth rate picked up in the second half of 2013. There was a gradual increase in the total payroll employment and a decline in unemployment rate. Consumer price inflation was still performing poorly than expected, while longer-term inflation expectations remained stable.

An inflation-control target range is 1% to 3%. The Bank of Canada targets to maintain inflation at 2% which is the midpoint of inflation-control target range. (Inflation, n.d.) In Canada, the inflation rate in December 2015 is 1.6%. It is the highest inflation rate in Canada since November 2004. Based on what we have learnt, inflation is an increase in the overall price level. In December 2015, the price level of imported goods and weak oil price increase due to the consequence of lower loonie. Besides, consumers pay 3.7% more on food as the price of vegetable and fruit become higher. They also pay more on shelter cost such as home, mortgage insurance and electricity. (Golubova, A., 2016) The higher the inflation rate, the lower the currency.

According to easynomics.com, from Q3 2012-Q2 2015, there was a confirmed upward trend with real GDP rising which translates to approximately 2.26 percent annual growth rate. Although the increase rate is too slow that people may not feel the recovery, but it does suggest the increase.

However, there are other signs that the economy is weakening. Since January’s retail sales came in lower than expected. Retail sales dropped 1.7 per cent in course of January till December. Year over year, sales were only up 1.2 per cent. The Bank of Canada cut its rate by a quarter point to 0.75 per cent in January. They stated that it was “insurance” against the possible effects of plunging crude oil prices on Canada’s economic growth. It is also widely speculated that the Bank of Canada Governor Stephen Poloz could cut again if the economy gets worse. January retail sales where unusually weak. The sharp drop in global crude oil prices will be more negative for Canadian economic growth and underlying inflation than the central bank is hoping for. Food prices increased 3.9 per cent in February and it is the first category to feel the impact of a lower loonie. Beer, which historically was been untouched by currency swings, has also risen due to the fact that most of the beer consumed in Canada is now imported. Beer was up 4.8 per cent in

The article is about who Canadian inflation rose to its highest rate in more than two years in January, as a carbon taxes in Alberta and Ontario caused a rise in gasoline prices. It also talks about the rise in food, education, reading, alcohol and tobacco.

Economics: * Unemployment nationally 10%Recession started in 2008; unemployment is high in record in Canada now. People

The current rate of GDP growth, according to the Bureau of Economic Analysis, is 2.7% (for Q3), and it was 1.3% in Q2 of this year. This rate reflects relatively slow growth, with challenges remaining in the domestic market and with sluggishness in Europe suppressing exports to that region. The rate of GDP growth is predicted to slow to a decline of 0.5% between Q4 2012 and Q4 2013, the US re-entering recession, according to the Congressional Budget Office's projections. These projections are based on the provisions of the Budget Control Act being enacted, though any observers are doubtful that this will occur.

Monetary policy, ‘The government’s policy relating to the money supply, bank interest rates, and borrowing’ (Collin: 130), is another tool available to the government to control inflation. Figure 4 shows, that by increasing the interest rate (r), from r1 to r2, the supply of money (ms) is reduced from Q1