In October, the Canadian economy added a surprising 67,000 jobs, causing the unemployment rate to fall to 6.9%. While much of the job growth was in part-time positions, there were notable gains in wholesale and retail trade. Though the jobless rate decreased, it remained elevated and concentrated in specific sectors, signaling a labor market still recovering. Economists predict that the Bank of Canada will likely pause on rate cuts in December due to this data, and continued slow growth in employment overall.
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Finance Minister François-Philippe Champagne unveiled a federal budget featuring significant investments in infrastructure, housing, and the military, alongside public service cuts to address economic challenges. The budget projects a deficit of approximately $78 billion for the 2025-26 fiscal year, with $141 billion in new spending over five years, partially offset by $51.2 billion in cuts. Key highlights include investments in high-speed rail, ports, and critical minerals, as well as a reduction in immigration, and a potential end to the emissions cap. The government aims to foster business development through tax incentives and has allocated substantial funds for the Canadian Armed Forces.
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The Canadian Senate recently passed the One Canadian Economy Act, designed to expedite “nation-building” projects and stimulate economic growth. This legislation allows the cabinet to streamline approvals for projects deemed beneficial to the economy, potentially including energy infrastructure and resource extraction. While proponents claim the act addresses trade tensions with the United States and removes internal trade barriers, it has drawn criticism from Indigenous groups and environmental activists, who fear it will undermine consultation processes and potentially silence opposition to projects. The act mandates government consultation with Indigenous peoples before fast-tracking projects, yet some Indigenous leaders remain concerned about the potential impact on their rights.
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Canada’s real GDP fell 0.2 per cent in February, primarily due to a 0.6 per cent decline in goods-producing industries, particularly mining and oil and gas extraction. While service-producing industries also contracted slightly, the manufacturing and finance sectors showed growth. However, early March data suggests a 0.1 per cent GDP increase, pointing towards a moderate 1.5 per cent annualized growth rate for the first quarter. Experts attribute February’s decline largely to severe winter weather, but anticipate potential economic headwinds from the ongoing US-China trade war in the second quarter.
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California is now the fourth largest economy in the world. This remarkable achievement is a testament to the state’s diverse and dynamic economy, fueled by innovation, technology, and a robust agricultural sector. It’s a compelling narrative, particularly considering the consistent narrative from some quarters that the state is in decline.
California’s economic strength isn’t just a matter of sheer size; it’s a reflection of forward-thinking policies. The state’s ambitious renewable energy goals, initially met with resistance, have not only been achieved years ahead of schedule but have demonstrably benefited the state. The fact that California’s grid ran entirely on renewable energy for 98 days last year, without impacting costs or causing blackouts, serves as a powerful example.… Continue reading
Following the U.S.’s imposition of new tariffs, China’s Foreign Ministry declared that “the market has spoken,” referencing the significant two-day drop in U.S. stock markets exceeding 5%. China’s retaliatory 34% tariff on U.S. goods, effective April 10th, further fueled global market anxieties concerning inflation, recession, and overall economic growth. The Chinese Ministry urged the White House to engage in equitable negotiations to de-escalate the trade conflict. The White House has yet to respond to requests for comment.
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In response to President Trump’s unexpected tariffs, Federal Reserve Chair Jerome Powell voiced concern over the potential for increased inflation and reduced economic growth. Powell emphasized the Fed’s commitment to maintaining stable inflation and stated that the central bank will adopt a wait-and-see approach regarding interest rate adjustments until the full economic impact of the tariffs becomes clear. He noted that the tariffs’ effects are uncertain but are likely to be significant, causing both higher inflation and slower growth. This cautious stance follows recent market volatility and President Trump’s call for interest rate cuts.
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U.S. manufacturing activity showed modest growth in February, marking the second consecutive month of expansion after a prolonged period of contraction. However, the pace of growth slowed to 50.3, a slight decrease from January’s reading. This weaker-than-expected result coincides with rising price pressures fueled by concerns over potential new tariffs. The increase in prices is a significant factor impacting the manufacturing sector’s performance.
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January’s Consumer Price Index (CPI) report revealed a 3% year-over-year increase in inflation, exceeding expectations and marking a rise from the previous month’s 2.9%. This surge, driven by increased costs for groceries, gasoline, and rent, is likely to solidify the Federal Reserve’s stance against further interest rate cuts. The unexpected inflation increase follows President Trump’s election promises to reduce prices and could dampen business optimism, as evidenced by the Dow’s decline and rising bond yields. Economists express concern that this inflation, coupled with Trump’s proposed tariffs, could negatively impact business confidence and economic growth.
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John Q. Hosedrinker 
Matt Underwood