Weekly Digests

Welcome to our Weekly Digest – stay in the know with some recent news updates relevant to business and the economy.

Grocery habits may be returning to normal after inflation surge

The head of one of Canada’s largest grocery chains says he’s seeing the early signs of consumer behaviour normalizing after years of trading down and cutting back in the cost of living crunch.

Canadians should brace for recession because odds are ‘not zero’

Former Bank of Canada governor Stephen Poloz sees recession conditions in many parts of the Canadian economy, as growth fails to keep pace with an increasing population.

Canada risks ‘drop in living standards’ amid worsening productivity

Economists say in a new report that Canada risks decreased living standards if it doesn’t address labour productivity issues. On Thursday, TD Bank’s Chief Economist Beata Caranci and Senior Economist James Marple released a report highlighting a “pronounced downshift” in Canada’s labour productivity across most industries following the pandemic. According to the report, the goods-producing sector accounts for the majority of the nation’s stagnant productivity growth, while the service sector has slowed to a lesser degree.

Looming Air Canada strike like ‘Russian roulette with our economy,’ business leaders say

The president of the Business Council of Canada called on the federal government Thursday to intervene in a potential Air Canada strike, saying a work stoppage there will harm the country’s business community and do ‘brand damage’ for Canada as a reliable trading partner.

Canada’s productivity slowdown is everyone’s problem

The fact that Canada’s performance has deteriorated so materially since the pandemic should be of grave concern to all Canadians, particularly younger generations. Canadian’s standard of living, as measured by real GDP per person, was lower in 2023 than in 2014. Without improved productivity growth, workers will face stagnating wages and government revenues will not keep pace with spending commitments, requiring higher taxes or reduced public services.

RBC CEO McKay advocates for Canadian tax reform

Royal Bank of Canada’s top executive said the country’s economic policy has veered off track, and it needs a more competitive tax regime and a tighter relationship with the US.
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Consumer sentiment is improving,’ despite economic concerns

Empire CEO Michael Medline said the grocery retailer is seeing early indications that consumer sentiment is improving, “returning to more favourable and predictable shopping behaviour,” despite a struggling Canadian economy.

Gas prices in Canada drop to lowest national average since February

Gas prices in Canada have dropped to their lowest national average since February, according to data from Kalibrate.

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