Wednesday, August 17, 2022
No Result
View All Result
  • Media
Support Us
Macdonald-Laurier Institute
  • Home
  • About
    • Who We Are
    • Who Makes MLI Work
    • Tenth Anniversary
    • Jobs
  • Experts
  • Issues
    • Domestic Policy Program
      • Agriculture and Agri-Food
      • Canada’s Political Tradition
      • Economic policy
      • Energy
      • Health Care
      • Justice
      • Social issues
      • Telecoms
    • Foreign Policy Program
      • Foreign Affairs
      • National Defence
      • National Security
    • Indigenous Affairs Program
  • Projects
    • COVID and after: A mandate for recovery
    • COVID Misery Index
      • Beyond Lockdown
    • Provincial COVID Misery Index
    • Centre for Advancing Canada’s Interests Abroad
      • Dragon at the Door
      • The Eavesdropping Dragon: Huawei
    • An Intellectual Property Strategy for Canada
    • Speak for Ourselves
    • Canada and the Indo-Pacific Initiative
    • DisInfoWatch.org
    • The Transatlantic Program
    • Indigenous Prosperity at a Crossroads
      • Aboriginal Canada and Natural Resources
    • Talkin’ in the Free World with Mariam Memarsadeghi
    • Past Projects
      • Justice Report Card
      • Munk Senior Fellows
      • A Mandate for Canada
      • Confederation Series
      • Fiscal Reform
      • The Canadian Century project
      • Fixing Canadian health care
      • Internal trade
      • From a mandate for change
      • Size of government in Canada
  • Events
    • Upcoming Events
    • Past Events
      • MLI Dinners
      • Great Canadian Debates
  • Latest News
  • Libraries
    • Inside Policy Magazine
      • Inside Policy Back Issues
      • Inside Policy Blog
    • Papers
    • Columns
    • Books
    • Commentary
    • Straight Talk
    • Video
    • Multimedia
    • Podcasts
    • Leading Economic Indicator
    • Labour Market Report
    • MLI in the Media
  • Home
  • About
    • Who We Are
    • Who Makes MLI Work
    • Tenth Anniversary
    • Jobs
  • Experts
  • Issues
    • Domestic Policy Program
      • Agriculture and Agri-Food
      • Canada’s Political Tradition
      • Economic policy
      • Energy
      • Health Care
      • Justice
      • Social issues
      • Telecoms
    • Foreign Policy Program
      • Foreign Affairs
      • National Defence
      • National Security
    • Indigenous Affairs Program
  • Projects
    • COVID and after: A mandate for recovery
    • COVID Misery Index
      • Beyond Lockdown
    • Provincial COVID Misery Index
    • Centre for Advancing Canada’s Interests Abroad
      • Dragon at the Door
      • The Eavesdropping Dragon: Huawei
    • An Intellectual Property Strategy for Canada
    • Speak for Ourselves
    • Canada and the Indo-Pacific Initiative
    • DisInfoWatch.org
    • The Transatlantic Program
    • Indigenous Prosperity at a Crossroads
      • Aboriginal Canada and Natural Resources
    • Talkin’ in the Free World with Mariam Memarsadeghi
    • Past Projects
      • Justice Report Card
      • Munk Senior Fellows
      • A Mandate for Canada
      • Confederation Series
      • Fiscal Reform
      • The Canadian Century project
      • Fixing Canadian health care
      • Internal trade
      • From a mandate for change
      • Size of government in Canada
  • Events
    • Upcoming Events
    • Past Events
      • MLI Dinners
      • Great Canadian Debates
  • Latest News
  • Libraries
    • Inside Policy Magazine
      • Inside Policy Back Issues
      • Inside Policy Blog
    • Papers
    • Columns
    • Books
    • Commentary
    • Straight Talk
    • Video
    • Multimedia
    • Podcasts
    • Leading Economic Indicator
    • Labour Market Report
    • MLI in the Media
No Result
View All Result
Macdonald-Laurier Institute

Tepid Economic Growth Points to Structural Problems: Cross Quarterly Economic Report

July 4, 2019
in Commentary, Domestic Policy Program, Economic policy, Latest News, Leading Economic Indicator, Releases
Reading Time: 3 mins read
A A

OTTAWA, ON (July 4, 2019): 2019 has so far been defined by one distinct trend: slow economic growth. While Canada may be on track for a resumption of moderate economic growth for the second half of 2019, our economy remains significantly slower than that of the US.

What explains this weakness?

In MLI’s latest Quarterly Economic Report, Munk Senior Fellow Philip Cross points to the serious structural problems hampering the Canadian economy. With deficit-fuelled spending running amok and continued weakness in investment and exports, Cross argues that the economy’s slow growth was entirely predicable.

“The stall in the Canadian economy over the last six months was predicted by the Macdonald-Laurier Institute’s leading economic indicator (LEI), whose growth slowed to a crawl last spring,” explains Cross.

“Economic growth continued at an anaemic pace in the first quarter, with real GDP edging up 0.1 percent for the second consecutive quarter. All of the growth originated in the government sector, as GDP generated by the business sector fell 0.1 percent in each of the past two quarters.”

The report finds that businesses, consumers, and the public sector are all relying on debt-fuelled spending. This in turn has resulted in lower savings at a time in which income growth is stagnate, suggesting that the economy is more exposed to long-term risk.

In addition, exports have been slumping, particularly when it comes to energy exports. The inability to get Canadian oil products to non-US markets has resulted in a $12 billion annual loss for Canada. Worryingly, export weakness is not limited to the resource sector.

As Cross explains, “persistent weakness in non-energy exports reflects growing concerns in the business community about Canada’s competitiveness even with a depreciating dollar.”

This is all occurring against a backdrop of over a decade of slow business investment. Government action is also having a negative impact on the investment climate.

“The pipeline industry, for example, is anxious to invest billions in new projects,” Cross argues. However, the industry has been “continually frustrated by government regulators refusing or rescinding approval.”

By contrast, the US economy is growing at a rate far greater than that of Canada’s. Cross notes that “over the past four quarters, real GDP in the US rose 3.2 percent versus 1.3 percent in Canada. Business sector GDP in the US expanded even faster at 3.9 percent, its strongest annual increase in years. By comparison, business sector GDP in Canada rose by only 0.9 percent over the past four quarters.”

To learn more, read Cross’ full quarterly economic report, Tepid Economic Growth in Canada Points to Structural Problems.

***

Philip Cross is a Munk senior fellow at the Macdonald-Laurier Institute. Prior to joining MLI, Mr. Cross spent 36 years at Statistics Canada specializing in macroeconomics. He was appointed Chief Economic Analyst in 2008 and was responsible for ensuring quality and coherency of all major economic statistics.

Cross’s Quarterly Economic Reports provide analysis of the latest economic data and results of the Macdonald-Laurier Institute’s Leading Economic Indicator, designed to signal an upcoming turn in the business cycle, either from growth to recession or from recession to recovery, six months in advance.

For more information please contact:

Brett Byers-Lane
Communications and Digital Media Manager
613-482-8327 x105
brett.byers-lane@macdonaldlaurier.ca

Tags: economic policyeconomyPhilip Cross
Previous Post

Why governments keep screwing up major infrastructure projects: Philip Cross in the Financial Post

Next Post

Whither the United States, Europe, and Iran: David Kilgour in the Epoch Times

Related Posts

Iran Is About to Murder Another Journalist: Mariam Memarsadeghi in the Tablet
Columns

Iran Is About to Murder Another Journalist: Mariam Memarsadeghi in the Tablet

August 16, 2022
An Era of Great Power Competition: Implications for the United States and Canada
Foreign Policy Program

An Era of Great Power Competition: Implications for the United States and Canada

August 15, 2022
Poilievre’s spirit hung over Centre Ice Conservatives like Banquo’s ghost: Jack Mintz in the National Post
Columns

Poilievre’s spirit hung over Centre Ice Conservatives like Banquo’s ghost: Jack Mintz in the National Post

August 15, 2022
Next Post
Whither the United States, Europe, and Iran: David Kilgour in the Epoch Times

Whither the United States, Europe, and Iran: David Kilgour in the Epoch Times

Macdonald-Laurier Institute

323 Chapel Street, Suite #300
Ottawa, Ontario
K1N 7Z2 Canada

613.482.8327

info@macdonaldlaurier.ca
MLI directory

Follow us on

Newsletter Signup

First Name
Last Name
Email Address

Support Us

Support the Macdonald-Laurier Institute to help ensure that Canada is one of the best governed countries in the world. Click below to learn more or become a sponsor.

Support Us

Inside Policy Magazine

  • Current Issue
  • Back Issues
  • Advertising
  • Inside Policy Blog
  • Privacy Policy

© 2021 Macdonald-Laurier Institute. All Rights reserved.

No Result
View All Result
  • Home
  • About
    • Who We Are
    • Who Makes MLI Work
    • Tenth Anniversary
    • Jobs
  • Experts
  • Issues
    • Domestic Policy Program
      • Agriculture and Agri-Food
      • Canada’s Political Tradition
      • Economic policy
      • Energy
      • Health Care
      • Justice
      • Social issues
      • Telecoms
    • Foreign Policy Program
      • Foreign Affairs
      • National Defence
      • National Security
    • Indigenous Affairs Program
  • Projects
    • COVID and after: A mandate for recovery
    • COVID Misery Index
      • Beyond Lockdown
    • Provincial COVID Misery Index
    • Centre for Advancing Canada’s Interests Abroad
      • Dragon at the Door
      • The Eavesdropping Dragon: Huawei
    • An Intellectual Property Strategy for Canada
    • Speak for Ourselves
    • Canada and the Indo-Pacific Initiative
    • DisInfoWatch.org
    • The Transatlantic Program
    • Indigenous Prosperity at a Crossroads
      • Aboriginal Canada and Natural Resources
    • Talkin’ in the Free World with Mariam Memarsadeghi
    • Past Projects
      • Justice Report Card
      • Munk Senior Fellows
      • A Mandate for Canada
      • Confederation Series
      • Fiscal Reform
      • The Canadian Century project
      • Fixing Canadian health care
      • Internal trade
      • From a mandate for change
      • Size of government in Canada
  • Events
    • Upcoming Events
    • Past Events
      • MLI Dinners
      • Great Canadian Debates
  • Latest News
  • Libraries
    • Inside Policy Magazine
      • Inside Policy Back Issues
      • Inside Policy Blog
    • Papers
    • Columns
    • Books
    • Commentary
    • Straight Talk
    • Video
    • Multimedia
    • Podcasts
    • Leading Economic Indicator
    • Labour Market Report
    • MLI in the Media

© 2021 Macdonald-Laurier Institute. All Rights reserved.

IDEAS CHANGE THE WORLD!Have the latest Canadian thought leadership delivered straight to your inbox.
First Name
Last Name
Email address

No thanks, I’m not interested.