New inflation data, upcoming UWES events, and more!
Written By: Peter Robertson and Syed Afridi
Canada’s Economy at a Glance
Economics Society News, Events, and Articles
- Economics Study Lounge, biweekly on Tuesday nights 7-9pm. Further information and confirmation of location will be posted on UWES Instagram page.
- Speaker Series, Lecture from Prof. Predrag Rajsic. Further information will be posted on UWES instagram page.
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News and Noteworthy
‘Negative trajectory’ in consumer confidence shows Canadians increasingly anxious about economy
New polling data released by Nanos this week suggests that consumer confidence is falling in Canada, largely due to the continued rise of inflation which 15.4% of Canadians now view as the most important national issue. Nanos pollster Nick Reid also cites the Conservative party leadership race where inflation and the economy have become top issues as a significant reason for rising worries about the economy. Although Pierre Poilievre has been notably critical of the Bank of Canada, other frontrunners like Jean Charest and Patrick Brown have also emphasized their worries about the economy. Read more.
Why high oil prices aren’t creating an economic boom in Canada
Historically rises in oil prices have led to a stronger Canadian dollar, however with recent record highs at the gas pumps the dollar has stayed relatively flat. Commodities expert Rory Johnston says this is largely due to lower investment appetite because of the rapid changes in demand experienced over the last couple decades. This paired with environmental worries and sentiment that demand could decrease in the near future have meant that we haven’t seen the same increases in investments or jobs that helped make the Canadian dollar so strong through past oil booms. Read more.
International travel to Canada on the rise as pandemic restrictions lift: StatCan
New data shows there was a significant rise in international travelers visiting Canada during March as some travel restrictions were lifted. Canada received 148,900 visitors from overseas in March which is 5 times as many compared to March 2021, but still 43% short of pre-pandemic levels. There were also 465,200 visitors from the US; another increase of over 400% from March 2021, but that was just a third of pre-pandemic levels. More restrictions were lifted in April suggesting visitor numbers continue to increase throughout the summer. Read more.
US stocks notch their best week since November 2020
The S&P 500 wiped out its May losses and posted its biggest weekly gain since November 2020. Global stock funds saw their largest inflows in 10 weeks, led by US shares, according to a Bank of America Corp.’s note citing EPFR data. The Nasdaq 100 outpaced major benchmarks, with Apple Inc. and Tesla Inc. up more than 4%. Read More.
Putin says Russia ‘ready’ to allow Ukraine grain exports
Russian President Vladimir Putin has told the leaders of France and Germany that Moscow was “ready” to look for ways to ship grain stuck in Ukrainian ports but demanded the West first lift sanctions amid an escalating global food crisis. Read More.
Goldman Says Bull Market in Battery Metals Is Finished for Now
Goldman Sachs Group Inc. said the price of three key battery metals — cobalt, lithium and nickel — will drop over the next two years after investors wanting exposure to the green-energy transition piled in too quickly. “Investors are fully aware that battery metals will play a crucial role in the 21st century global economy,” Goldman analysts including Nicholas Snowdon and Aditi Rai said in a note on Sunday. “Yet despite this exponential demand profile, we see the battery metals bull market as over for now.” Read More.