Economics Newsletter – Week of November 16th 2020

Written By: Amit Shteyer & Hannah Lobbezoo

Canada’s Economy at a Glance

Economics Society News, Events, and Articles

Articles:

The World’s Scarcest Resource by Hannah Saul

News:

Join our virtual ECON lounge on Discord!

Excel Finance Essentials workshop on November 26th at 7pm (EST) hosted with Stocks Club. Register on Eventbrite here.

News and Noteworthy

Food prices drive Canada’s inflation rate higher than expected as the price of lettuce skyrockets
Canada’s inflation rate rose to 0.7 percent in October which is higher than that of 0.5 per cent in September. This increase was mainly due to higher food prices with a rise in fresh vegetable charges of over 25%, according to Statistics Canada. Read More.

Fall COVID-19 surge in Manitoba expected to delay economic recovery until 2022
After many dozens of lives were lost in Manitoba due to COVID-19 this fall, the province’s economic recovery is expected to be delayed until 2022. The economic growth and unemployment rate in Manitoba is expected to be slower than that of Canada as a whole in the coming year. Read more.

Bank of Canada warns climate change will have profound impact on economy
The Bank of Canada says the country should increase its efforts in helping businesses and households with managing the risks that accompany extreme weather and the shift to low-carbon growth. Canada needs to ensure its financial system is resilient to the risks of climate change, just as it was to the effects of the 2008 recession. Read more.

As COVID-19 relief programs wind down, bankruptcies starting to spike again
The Office of the Superintendent of Bankruptcy Canada reported that 7,658 Canadian filed insolvencies in September, amounting to an 19% since the COVID-19 pandemic began. Experts warn that if the government does not take action soon, the economy could be faced with a much higher rate of insolvencies in the coming months. Read more.

More than 20,000 women left Canada’s workforce during pandemic: Study
New childcare demands brought on by the pandemic are one reason why between February and October more than 20,000 women left Canada’s workforce. RBC’s deputy chief economist stated that this pattern could slow Canada’s economic recovery. Read more.

Canada’s Condo Market Face Perfect Storm as Rental Rates Tank, Costs Jump
The onset of the pandemic caused a massive shift in consumer demand for housing. This has caused a drop in rental prices for consumers. At the same time condo owners are experiencing increased costs and rental rates that will not cover their mortgage payments. Read more.

UW Economics Society