Economic Newsletter – Week of January 11th 2021

Written By: Amit Shteyer & Hannah Lobbezoo

Canada’s Economy at a Glance

Economics Society News, Events, and Articles

Welcome to the Winter 2021 term! We are excited to share the events that we have in store, so be on the lookout.

News:

Get your resume critiqued by an upper year student by completing the google survey in our Link Tree.

News and Noteworthy

Global economy faces fears of a ‘lost decade’ as COVID-19 cases surge
Discoveries of new variants and mutations of the virus have turned the optimism of people worldwide into a sense of caution. The World Bank released its Global Economic Prospects report for 2021 which warns of a ‘lost decade’, specifically for those countries that are struggling to contain the virus. Read More.

At least 4M Canadians need to be vaccinated before reopening the economy, RBC CEO says
Canada is on its way to an economic rebound, which is highly dependent on its ability to contain the spread of the coronavirus. It is predicted that over 4.5 million at risk Canadians will need to be vaccinated before a reopening occurs. Read More.

Canada’s Economy has never been more dependent on real estate
Residential investment reached a record high in Q3 of 2020. The direct contribution of real estate to GDP is now the largest it has ever been. Read More.

Bank of Canada business survey turns positive for first time since pandemic began
A recent survey conducted by the Bank of Canada indicates that businesses have a positive outlook on the next 12 months. The Bank of Canada attributes this to strong foreign demand, confidence in new vaccines, and government relief programs. However, this survey came before strict provincial restrictions that were put in place at the beginning of the year. Read More.

Canada’s labour market takes bigger hit than expected, shedding almost 63,000 jobs amid lockdowns
The end of a turmoil ridden year saw 63,000 jobs lost in December, the first net drop in unemployment since April. Job losses occurred where expected, industries most impacted by government restrictions due to the pandemic. Read More.

Smaller cities suffer the economic brunt of Air Canada’s pandemic exit
Earnings of Air Canada have been slashed, becoming more severe with the new wave of the pandemic. Recently, Air Canada has rolled out route closures to save on expenses, inadvertently hurting local economies that rely on them. The question is being raised as to whether Air Canada is using these closures as a way to save money, or force the government’s hand on a bailout. Read More.

UW Economics Society