Weekly News Watch 13

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This week went by quite fast, especially when we saw Mark Carney call the private sector to step up and start supporting the economy or be at risk that the fragile economy will fade out alongside with the government stimulus.

Consumer Confidence rose slightly this month, continuing the seventh month streak. In the latest survey consumer confidence rose 2.5 points, to 90.9; this shows that consumers feel now is a good time to make major purchases as there is optimism pertaining to employment.

A large piece of news that came out this week was the Gross Domestic Product (GDP) data. It showed that in July, the GDP remained unchanged, this sparked a lot of debate on whether will be seeing the 1.3% growth that has been forecasted by the central bank for the July – September period.

There is not much optimism on there being such growth, unless Augusts’ numbers prove otherwise.

The International Monetary Fund has said that the global economy is recovering faster, but governments should not be withdrawing the added spending and low interest rates which have pushed growth.

With the Canadian economy at an unexpected stall, it makes people wonder whether the forecast was wrong, but I personally think we should be seeing growth in August. This is solely based on the fact that people take time to do what they say they will, making purchases, etc is the same. I think that the GDP data in August will suggest the growth of the economy.

Related Posts

• RBC Economics: Canada on the Path for Recovery in 2010
• Canadian Economy at Stall in July
• GDP Remains Unchanged
• National Bank Financial Group’s Financial and Economic Outlook
• Bank of Canada’s Forecast Wrong?