Economics Newsletter – Mar 1, 2024

New UWES articles, CPI data, and more!

Written By: Benjamin Pipicelli, Lexx Thomson, Dorje Gyaltsen, & Gordon Huynh

Economics Newsletter – Mar 1, 2024

Canada’s Economy at a Glance


Author’s Commentary

Market Call 

In Canada, all eyes will be on the GDP figures, where we expect to see a rebound in activity in Q4 driven largely by a fading of supply chain issues, while domestic demand is still likely to look sluggish, particularly in per-capita terms. Although our call for 0.8% annualized growth is well above the BoC’s expectation for a flat quarter, that will likely be driven by an expansion in the supply side of the economy, which doesn’t pose a threat to inflation. Early indicators for activity in January have looked mixed so far, and the January advance estimate for GDP will provide more colour on activity in a month where mild weather conditions could have boosted output

News and Noteworthy

Chipmaker Nvidia is worth nearly as much as the entire Canadian economy

Technology giant Nvidia is hitting new heights thanks to demand for products connected to artificial intelligence, leading the chipmaker to a market value that this week approached that of the entire Canadian economy. The California-based company briefly hit $2 trillion US in overall value, or market capitalization, for the first time on Friday, riding on insatiable demand for its semiconductors and chips. Read more.


One-third of Canadians are considering alternative home ownership models amid low affordability

One-third of Canadians are considering alternative home ownership models, a new survey has found, as purchasing a home remains out of reach amid an ongoing affordability crunch. According to a survey conducted by Leger on behalf of Re/Max Canada, 32 percent of Canadians are exploring non-traditional ways of entering the housing market. The most common alternatives, according to Re/Max, include rent-to-own scenarios, home ownership with someone who isn’t a spouse or partner, and renting out part of the home. Read more.


Loblaw sees profit increase as customers turn to discount brands amid inflation

Loblaw (L.TO) reported a $541 million profit in the fourth quarter, as customers continue to turn to the company’s discount banners amid higher food inflation. Canada’s largest grocery retailer reported net earnings available to common shareholders in the fourth quarter of $541 million, or $1.72 per diluted share, up from $529 million, or $1.62 per diluted share, during the same period last year. Read more.


Canada real estate: Income needed to buy a home falls nationwide in January

While purchasing a home remains out of reach for many Canadians, housing affordability improved across the country in January amid softening mortgage rates. According to an analysis conducted by, the minimum income required to purchase an average-priced home fell in each of the 13 markets examined from December 2023 to January of this year. Read more.


Air Canada stock falls 7% amid higher labour costs, but carrier says demand remains strong

Shares of Air Canada (AC.TO) fell as much as seven percent on Friday following the release of quarterly financial results, as the airline reported rising operating expenses driven in part by higher labour costs. Canada’s largest airline reported an adjusted net loss of $44 million, or 12 cents per diluted share, in the fourth quarter of the year, compared to an adjusted loss of $217 million, or 61 cents per share, during the same quarter in 2022. Read more.

Economics Society News, Events, and Articles

– Keep an eye out on our Instagram page @uweconsoc for updates regarding future events

– Check out our most recent original article, Redefining a Middle: An Exploration of the Global Middle in the Case of China and India, written by Stefan Venceljovski

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