Will canada exceed 3%+ gdp growth for 2017

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Will Canada exceed 3%+ GDP growth for 2017

Will Canada exceed 3%+ GDP growth for 2017By: Paul Young CPA, CGADate: April 15, 2017

WhaT Drives GDP GrowthConsumer SpendingBusiness SpendingGovernment Spending

Canada GDP January 2017Source Stats Canada

Factors that will influence GDPGovernment budgets are strapped for CashImpact of Carbon Taxation and/or hydro rates have not work through the complete supply chainInflation is over 2.3%Wages continue to be stagnatedBusiness investment is weakOil Prices are up, but struggling to get above $55/BarrelTrumps economic policies have yet to be implementedConsumer spending main drive is large purchases. Automotive sales have pulled back in March 2017Weak global Demand

2017-2018 Federal Budget Chamber of Commerce/Calgary April 4, 2017 We agree that Budget 2017 sets some foundation for a more competitive and innovative Canada. This is doneby encouraging superclusters(Silicon Valley is a great example of a supercluster), setting up a strategic innovation fund, providing funds for venture capital, and investing in trade supportive industry (something we'vebeen advocating for for quite some time).The Budget also provides $1.8 billion over six years to expand EI training programs, and tables significant improvements for accessing global talent through the Global Skills Strategy. You can find moreinformation on the specific policies that may impact your business here.We also applaud some of the positive steps taken to promote the agri-food sector, a crucial industry for Alberta, representing our number two export.We are also very happy to hear that our government will be addressing Canada's internal trade barriers. The trade barriersbetween provinces costour economy billions of dollars each year. Simply put, they're a hidden constraint that hinders business growth.Progress on this front is a win for business.Comment:Canada already has innovation centers through various Universities/CollegesIt takes time to take ideas from incubation to market Funds are available, but not to every company. Government role is not to pick winners and losers

1. https://www.calgarychamber.com/insight/blog/what-your-business-needs-know-about-canadas-2017%C2%A0budget4

Natural Resources2017-2018 BudgetLittle support for Natural ResourcesRed Tape and Regulations No reduction in Red Tape/regulationsClean Tech is $50B marketNeeds access to raw materials (Lithium, Vanadium and Rare Metals)More funds for R&D which needs to available to more industries

Household Budgets

Government Carbon TaxCarbon taxation will add 5-8% to goods and services sold in CanadaAustralia pull the carbon tax as it did little for environment but hurt the economyGovernment removed more tax creditsTransit tax credit that saved a person $450/average year on their taxes

SummaryGDP 3.4% for 1Q17 like is not going to happen as there has been pulled back in areas like manufacturing sales, consumer spending and ExportsWages are not keeping pace with inflationCarbon Taxation will impact consumer prices which means people will spend less on consumer goodsMany governments have austerity measures as part of their fiscal management cycleBusiness investment is weakOntario business are making investment elsewhere due to high hydro ratesEmployment/job creation has been in areas like supply chain management. The goods producing sector continues to struggle to create new jobs