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The CEO of the Business Council of Canada, John Manley discussed the issue regarding NAFTA and Canada's current low business investment in the economy. Prime Minister Trudeau said in a recent interview for investors not to worry about the NAFTA agreement as he is "super confident" that there will be a positive outcome. Business investors are hesitant though causing low investment across the board. Looking back on the last 10 years, investment has been going down since the oil crisis a couple years ago and it seems investors have yet to fully trust the economy since. The NAFTA agreement may not be as bad as it looks since the U.S. is a lot bigger than Canada allowing them to hold a lot more leverage over us. This caused for a lot of negotiating leaving Canadian investors hesitant.
This article published by Canadian Business talks about how though the canadian economy is doing quite well people are still feeling like its tanking and not doing well. One of the reasons people are feeling this way is due to the increase in interest rates this past summer. As interest rates went up twice during the summer months people began to come into more debt than they ever had before. This had many people filled with concern and feeling of a dropping economy when the spike in interest rates was actually due to an increase in average household income. The article also explains how politicians heavily rely on the economy for their votes. As there main voters are the ‘middle class’ they tell them they are not getting paid enough and how there party will fix the economy to better them and their town. Often times it seems politicians, political leaders and their parties are so caught up in what the other parties are doing they lose sight of what the economy really needs to succeed.
In this article published in the Huffington post of Canada, it has a positive outlook on the Canadian economy, though there are a couple threatening deals on the line. Crude oil has had a major recent drop and the economy lost 30 million barrels of oil production due to the wildfires in Fort McMurray. The NAFTA deal between the US, Canada, and Mexico also poses a threat to the Canadian economy as the US are reducing there the number of imports. A reporter quested the issue "Protectionist policies are like trying to put the toothpaste back in the tube — it's difficult to do, messy, and can be wasteful". Canada is not doing as terrible as some people may have thought as the debt to GDP ratio is currently at 30%, whereas Japan is projected to hit a 130% debt to GDP ratio.
In this article published from the Financial Post, Alberta's premier, Rachel Notley did not attend a premier meeting ten days prior to Kinder Morgan's pipeline deadline as she wanted to ensure that it be built. This article highlights part of Canada's economic problem that all our premiers do not share the same goals of creating a better Canadian economy and a richer country. Since Washington gets over 35% of there crude oil from Canada they would have to look to other countries to replace this sudden cutoff of oil and gas if the pipeline does not go through. Without the pipeline, Canada's economy with suffer will BC’s oil and gas prices going through the roof. Gas prices are predicted to reach over $2 and there would be a huge decrease in exports of oil and gas if this does not go through.
With Canada's current slow-paced economy this article by The Globe and Mail explains what they believe to be the seven deadly economic problems Canada is currently facing. From housing, to exports, to deficits this article highlights all the economic issues Canada needs to fix in order to get the economy booming again. Though it is not all downhill for Canada, with the commodity prices and Canadian dollar so low exports are going up through our imports in return are still low. The increasingly high housing prices are only at bay due to the historically low-interest rates, but with them beginning to steadily rise this background issue will begin to explode.