Canada's Economy might take a BEATING in 2011 >>>

[qorax]

Hi Buddies,
First the GOOD NEWS – then the BAD NEWS on Canadian Economy...


The Good News is:
Crisis Unlikely to weigh on Canadian Economy: Experts Say
Published on Thr, Mar 17 2011
Madhavi Acharya-Tom Yew
Business Reporter
Toronto Star

The earthquake and resulting nuclear crisis in Japan is likely to have an indirect and limited effect on Canada's economy, experts say.

Japan is one of a cocktail of factors — along with turmoil in the Middle East, Europe's sovereign debt crisis, and the sagging U.S. recovery — that have recently weighed on stock markets, Paul Taylor, Chief Investment Officer for BMO Harris Private Banking, said in a conference call Thursday.

“Our view is that the dominant factor as we go forward will be the pace of the U.S., economic recovery, but we are very concerned with the other factors as well,” Taylor said. The Canadian economic impact from the disaster in Japan is expected to be limited, he added. “While there is trade between Japan and Canada, it's secondary to north-south trade with the U.S.”

Japan is the world's third-largest economy, but only 3 per cent of Canadian exports go to the country.

Longer-term Canadian lumber products and engineering construction firms are likely to benefit amid growing demand as Japan rebuilds roads, bridges, power plants, ports, and private homes, Taylor said.

In Japan, production at Toyota, Sony, and Fujitsu has come to a halt. Manufacturers are still far from resuming full operations, which could create shortages in technology and some industrial goods and automobiles in the coming weeks, said Jack Ablin, Chief Investment Officer, Harris Private Bank

The global credit crisis in 2008 had a broad reach, but events like Hurricane Katrina, the Haiti and Kobe earthquakes and even the 2001 terrorist attacks had limited impact in Canada, said Eric Lascelles, chief economist of RBC Global Asset Management. “Usually markets take it on the chin and rebound fairly quickly and within a couple of weeks often you find yourself back where you started,” he told Canadian Press in an interview.

Read further here:
http://www.thestar.com/business/article/955996--crisis-unlikely-to-weigh-on-canadian-economy-experts


The Bad News is:
A Middle Grade for Canada in latest Economic Ranking
Posted on Thr, Mar 17, 2011 6:28PM EDT
Kevin Carmichael
The Globe & Mail

We're No. 10 !
This is not the rallying cry you tend to hear associated with Canada and its economic performance these days...
But that's where the Conference Board of Canada reckons the country will rank when it completes its latest report card on the world's major developed economies.

When grading is complete, the Ottawa-based Conference Board said Thursday, Canada will slip to 10th on a list of 17 peer countries in 2010 from sixth in 2009. The Conference Board's advance rankings have Canada in ninth place in 2011, as of now.

Stephen Harper and his economic ministers have made much of Canada's relatively strong performance through the financial crisis. But the Conference Board appears to want to offset any tendency policy makers might have to rest on their laurels. The conference Board compiles indicators from the Organization for Economic Co-Operation and Development, the United Nations, the World Bank and the Yale Center for Environmental Law and Policy to assign countries letter grades on the economy, innovation, environment, education and skills, health, and society. Thursday's release relates to the “economy component”.

Canada's economy gets a low “B” grade in 2010 and a high “C” grade in 2011. Canada's economy actually improves in most categories; however, the improvement of many of its peers is even stronger. The projected Top Five in 2010 include Sweden, Switzerland, Belgium, Australia and Norway. All get “A” grades. Also ahead of Canada with “B” grades are Denmark, Germany, the US and Austria. Last on the list of 17 is Italy. In 2011, the Conference Board projects Australia will leapfrog Sweden to take the top spot on its list.

“Canada seems to be slipping back into old patterns as it comes out of the recession,” Glen Hodgson, the Conference Board's Chief Economist, said in a statement.

Read further here:
http://www.theglobeandmail.com/report-on-business/economy/economy-lab/daily-mix/a-middling-grade-for-canada-in-latest-economic-ranking/article1946588/

____________________________________________________________________________________________
Where do we go from here ?

Qorax

 

[Kcsider]

Thanks Qorax for sharing this.

I think the easy way forward is for Canada to continue to attract highly skilled immigrants who are within the working age group. A lot of emphasis should also be placed on integration into the Canadian society.
Someone posted sometime ago in this forum that it is a common occurrence in Canada to see a medical doctor driving taxi cab!!!

What Canada has done is to successfully attract a highly skilled immigrant who is grossly under utilised!!!

I recommend that the economy would be better if the scenario painted above is corrected.

KcSider

 

[yukon]

Thanks Qorax for sharing this.

I think the easy way forward is for Canada to continue to attract highly skilled immigrants who are within the working age group. A lot of emphasis should also be placed on integration into the Canadian society.
Someone posted sometime ago in this forum that it is a common occurrence in Canada to see a medical doctor driving taxi cab!!!

What Canada has done is to successfully attract a highly skilled immigrant who is grossly under utilised!!!

I recommend that the economy would be better if the scenario painted above is corrected.

KcSider

And College Instructors & Financial Managers wanting to become Security Guards:

http://www.canadavisa.com/canada-immigration-discussion-board/for-all-the-punjabis-t30092.0.html;msg647240#msg647240

 

[Right]

Many of the growing economies are doing so because of the ability to allow the best among them to do things. Idea of Canadian education cum experience is old fashioned and second to communism (apologies to those who share the idea)!

The leftist in many states, believed in the idea of competency and merit just like the US, Britain (during Major, Brown) remember that Tatcher almost ruined the economy by pratctising same ideology of brit jobs for brit pple....But when Tony Blair came on board it was a different brit all the same.

Kcsider and yukon have said, Canada may not be leap froging in the nearest future if she continues to promote mediocre in the name of Canadian edu and exp. while international qualified pple are roaming the street in disguised employement as labourer, security guards and cab drivers!

 

[sapanaB]

Many of the growing economies are doing so because of the ability to allow the best among them to do things. Idea of Canadian education cum experience is old fashioned and second to communism (apologies to those who share the idea)!

The leftist in many states, believed in the idea of competency and merit just like the US, Britain (during Major, Brown) remember that Tatcher almost ruined the economy by pratctising same ideology of brit jobs for brit pple....But when Tony Blair came on board it was a different brit all the same.

Kcsider and yukon have said, Canada may not be leap froging in the nearest future if she continues to promote mediocre in the name of Canadian edu and exp. while international qualified pple are roaming the street in disguised employement as labourer, security guards and cab drivers!

I totally agree with you Right..

 

[jnathan]

What an excellent post from Captain Qorax.
I had been in dark side with latest state of Canadian economy but this post has cleared my doubt.
Thanks again.

 

[qorax]

Here's more news on Economy & Business -- to keep our hopes flying high!
_______________________________________________________________________

Canada's core inflation DROPS to record low
Rate eases in February; growth mostly fueled by gasoline
Bloomberg and Financial Post | March 18, 2011
THE VANCOUVER SUN

OTTAWA — Canada's inflation rate excluding volatile items like gasoline slowed in February to a record low on a drop in prices for hotels and cars, government figures showed.

The so-called core inflation index, which excludes eight volatile items, rose 0.9 per cent in February from a year earlier, after a 1.4 per cent gain in January, Statistics Canada said today. That's the lowest rate since records for the core rate began in 1984. The overall consumer price index rose 2.2 per cent from a year earlier, after a 2.3 per cent January gain. Economists forecast the core rate would be 1.1 per cent, and the overall inflation rate 2.3 per cent, according to the median of 24 estimates in a Bloomberg News survey.

Bank of Canada policy makers reiterated earlier this month there is “considerable slack” in the economy that will help keep inflation close to their 2 per cent target. Governor Mark Carney has kept the central bank's benchmark policy rate at 1 per cent since last September, saying increases from this level would be “carefully considered.”

On a month-to-month basis, consumer prices were flat in February on a seasonally adjusted basis after seven straight months of increases. "While the rest of the world seems to be grappling with rising inflation pressures, Canada is going in the opposite direction," said BMO Capital Market deputy chief economist Douglas Porter. "Both headline and core inflation have eased since the start of the year."

There was a 2% decline in prices for clothing and footwear, and a slight 0.3 per cent reduction in costs related to recreation, education and reading. Statistics Canada noted that the price decline in the latter group included hotel-room rates that were cheaper than a year earlier, when the Winter Olympics were happening in Vancouver.

PLS READ MORE HERE:
http://www.vancouversun.com/business/Canada+core+inflation+drops+record/4463617/story.html

Qorax