With 2018 over, MLI Munk Senior Fellow Philip Cross joined CTV News to discuss what 2019 might have in store for the Canadian economy. As Cross identified near the end of last year. the outlook for Canada remains somewhat dark and there is plenty of risk.
“The number one risk for Canada’s economy is always what happens in the US,” explains Cross. “Our economies are so intertwined that whatever happens in the US is going to have an overwhelming impact here.”
Cross argues that global instability and a lack of experienced leadership in many Western democracies could serve as a catalyst for economic trouble in 2019. With the Brexit deadline around the corner, an ongoing trade war between the world’s two largest economies, remarkably low oil prices, and more, this year is fraught with risk.
“We have a lot of risk in the US and global economy… can young, inexperienced leaders manage risk properly? Can they bring the ship safely into port? I’m very skeptical about that.”
What’s worse, Cross contends that markets may not have properly factored in risk yet.
“We may be in for a lot volatility and a lot more declines [in 2019].”
Philip Cross is a Munk Senior Fellow with the Macdonald-Laurier Institute. He previously served as the Chief Economic Analyst for Statistics Canada, part of a 36-year career with the agency.