Economic think-tank says it’s back to reality after post-pandemic spending
It’s back to reality for the Canadian economy after a post-pandemic spending boom.
That’s according to the Conference Board of Canada. In a new report, the Conference Board said the economy is about to stall because consumers have now burned through savings they built up during the pandemic.
Senior Economist with the Conference Board Richard Forbes said it’s not necessarily bad news.
“I would take it as more of a good news story than a bad news story here,” said Forbes. “There’s going to be a bit of a slowdown like I mentioned, but it’ll be pretty mild. It’s more just the economy coming back down to earth, rather than any big downturn that’s coming.”
It’s something London couple Brett Weber and Anna Nagy learned the hard way. They say they’ve had to cut back on anything but the essentials.
“We’ve had to cut back more than ever,” Nagy told CTV News. “We had a lot of stuff that ended up happening. We needed to move, I’m now having a baby, I run my own business. Even that’s hard. We can’t buy a car.”
Another major factor that will slow the economy is the interest rate hikes.
The Conference Board said the full effect has not yet flowed through.
“Households that need to renew high mortgages will feel the greatest pinch,” said the report.
It’s something those in the housing market are watching closely, according to London real estate agent Chester Pawlowski.
“The prices have been coming down slowly,” he said. “But with the prices coming down, the interest rates have risen, so it’s kind of been a wash right now. So we’re waiting to see when the interest rates settle.”
As for Ontario specifically, Forbes said the downturn in consumer spending will be countered somewhat by government investment in new industry, such as battery plants in southwestern Ontario.
“So between that and a few automotive retooling activities at different motor vehicle companies, we see a lot of bright spots in terms of the business investment picture,” said Forbes.
The Conference Board says economic output in Ontario will remain slow in 2024, with a rebound not expected until 2025.
CTVNews.ca Top Stories
Iran President Ebrahim Raisi still missing after helicopter accident in mountains
A helicopter carrying Iranian President Ebrahim Raisi, the country's foreign minister and other officials apparently crashed in the mountainous northwest reaches of Iran on Sunday, sparking a massive rescue operation in a fog-shrouded forest as the public was urged to pray.
What do we know so far about the mysterious crash of the helicopter carrying Iran's president?
The apparent crash of a helicopter carrying Iran's president and foreign minister on Sunday sent shock waves around the region.
'A horrible way to start the summer': 3 killed in serious boat crash on lake north of Kingston, Ont.
Three people were killed and five others were injured Saturday night following a boat crash on the Buck Bay area of Bobs Lake, north of Kingston, Ont., the Ontario Provincial Police (OPP) said.
Walmart, Costco refusing to sign grocery code of conduct 'untenable': industry minister
Industry Minister Francois-Philippe Champagne says it's 'untenable' for 'smaller players' like Walmart and Costco to delay signing on to the government- and industry-led grocery code of conduct, now that industry giant Loblaw has agreed to do so.
Ottawa driver who appeared to be racing another vehicle on Highway 416 facing charges
The Ontario Provincial Police (OPP) says an Ottawa driver is facing charges after being caught going 187 km/h on Highway 416.
Ex-partner charged with first-degree murder after 55-year-old woman killed in Montreal
Less than 24 hours after Montreal's 12th homicide investigation began, Montreal police confirmed that a 55-year-old woman's death in St. Michel is the island's 13th homicide. The woman's ex-spouse has been charged with first-degree murder.
VIDEO Born without front legs, this dog has been inspiring the world for 3 years: Dresden farm owner
A sanctuary dedicated to animals with disabilities is celebrating the third birthday of one of its most popular residents.
Canadian immigration asks medical worker fleeing Gaza if he treated Hamas fighters
Lawyers are questioning Canada’s approach to screening visa applications for people in Gaza with extended family in Canada after one applicant, a medical worker, was asked whether he had treated members of Hamas.
Diddy admits beating ex-girlfriend Cassie, says he's sorry, calls his actions 'inexcusable'
Sean 'Diddy' Combs admitted Sunday that he beat his ex-girlfriend in a hotel hallway in 2016 after CNN released video of the attack, saying in a video apology he was 'truly sorry' and his actions were 'inexcusable.'