In this edition:
- Bank of Canada increases policy interest rate by 50 basis points
- Niagara Economic Development report shows strong business growth
- Municipalities continue process of certifying election results
- Ontario Chamber welcomes measures in Tuesday housing announcement
- Highest proportion of Canadians since Confederation were immigrants in 2021
- BlackBerry-commissioned research shows four in five software supply chains were exposed to cyberattacks in the last year
Bank of Canada increases policy interest rate by 50 basis points
The Bank of Canada today increased its target for the overnight rate to 3¾%, with the Bank Rate at 4% and the deposit rate at 3¾%. The Bank is also continuing its policy of quantitative tightening.
Inflation around the world remains high and broadly based. This reflects the strength of the global recovery from the pandemic, a series of global supply disruptions, and elevated commodity prices, particularly for energy, which have been pushed up by Russia’s attack on Ukraine. The strength of the US dollar is adding to inflationary pressures in many countries. Tighter monetary policies aimed at controlling inflation are weighing on economic activity around the world. As economies slow and supply disruptions ease, global inflation is expected to come down.
The effects of recent policy rate increases by the Bank are becoming evident in interest-sensitive areas of the economy: housing activity has retreated sharply, and spending by households and businesses is softening. Also, the slowdown in international demand is beginning to weigh on exports. Economic growth is expected to stall through the end of this year and the first half of next year as the effects of higher interest rates spread through the economy. The Bank projects GDP growth will slow from 3¼% this year to just under 1% next year and 2% in 2024.
The Bank expects inflation to fall to about 3% in late 2023, then return to 2% in 2024.
Niagara Economic Development report shows strong business growth
Niagara Economic Development has released its biannual report that provides an overview of the key economic indicators for Niagara’s economy with forecasts for 2023.
Niagara has shown great improvement through the pandemic period and appears to be on a trajectory of progress across many economic indicators in the near future. However, some significant challenges facing Niagara’s economy remain.
A few key points of the report include:
- Gross domestic product (GDP) continued to grow through the pandemic period and is projected to grow through 2023
- Niagara’s international trade position has improved substantially
- Business counts show substantial growth of businesses both with employees and without employees after the height of the pandemic
- Investment in building construction remains strong with the exception of the commercial sector
- All labour force indicators have shown great improvement after the disruptive impacts of the pandemic
Municipalities continue process of certifying election results
In compliance with legislation, municipal clerks are continuing to certify the results of Monday’s election, after which said results will be deemed official.
Municipalities who have completed certification so far include:
Ontario Chamber welcomes measures in Tuesday housing announcement
Rocco Rossi, President & CEO, Ontario Chamber of Commerce (OCC), released the following statement as the Government of Ontario introduced its latest round of housing legislation:
“We welcome many of the measures proposed in the bill introduced yesterday, several of which we have long advocated for, including reducing red tape and streamlining development approval processes, increasing gentle densification, and incentivizing inclusionary zoning and affordable housing development. Access to affordable housing is critical for businesses to attract and retain talent in the province.”
At the Niagara Economic Summit, a panel of experts will debate the provincial changes in legislation, whether they will be effective, and if they go far enough.
Highest proportion of Canadians since Confederation were immigrants in 2021
A study released today by Statistics Canada has revealed that in 2021, more than 8.3 million people, or almost one-quarter (23.0%) of the population, were, or had ever been, a landed immigrant or permanent resident in Canada. This was the largest proportion since Confederation, topping the previous 1921 record of 22.3%, and the highest among the G7.
Given that the population of Canada continues to age and fertility is below the population replacement level, today immigration is the main driver of population growth. If these trends continue, based on Statistics Canada’s recent population projections, immigrants could represent from 29.1% to 34.0% of the population of Canada by 2041.
BlackBerry-commissioned research shows four in five software supply chains were exposed to cyberattacks in the last year
On Oct. 26, BlackBerry Limited revealed new research at the 9th annual BlackBerry Security Summit, exposing the magnitude of software supply chain cybersecurity vulnerabilities in today’s organizations. Four in five (80%) IT decision makers stated that their organization had received notification of attack or vulnerability in its supply chain of software in the last 12 months, with the operating system and web browser creating the biggest impact. Following a software supply chain attack, respondents reported significant operational disruption (59%), data loss (58%) and reputational impact (52%), with nine out of ten organizations (90%) taking up to a month to recover.
The results come at a time of increased U.S. regulatory and legislative interest in addressing software supply chain security vulnerabilities.
Niagara Economic Summit
Mark Basciano will shed light on barriers to housing development in Niagara at Summit
The urgent need for housing is well-understood in Niagara, but prospective projects often get caught up in red tape and delays, sometimes for years. A lack of new units keeps more middle-income households in the rental market, in turn squeezing those in need of affordable units and people on fixed incomes.
As owner-principal of Mountainview, one of Niagara’s most prominent developers, nobody understands how to get shovels in the ground for housing builds better than Mark Basciano.
At the Niagara Economic Summit, Mark joins the panel on Housing the Future to share his insights into how governments at every level can clear the way for private-sector developers to build the housing that Niagara desperately requires. Unlocking the potential in Niagara’s developers will be key to solving this crisis. Join us at the Summit to hear how.
Contact us to submit your questions for Mark.
Click here for tickets to this year’s Niagara Economic Summit.
Focus on Climate
Current emissions pledges will lead to catastrophic climate breakdown, says UN
Pledges to cut greenhouse gas emissions will lead to global heating of 2.5C, a level that would condemn the world to catastrophic climate breakdown, according to the United Nations.
Only a handful of countries have strengthened their commitments substantially in the last year, despite having promised to do so at the Cop26 UN climate summit in Glasgow last November. Deeper cuts are needed to limit temperature rises to 1.5C above pre-industrial levels, which would avoid the worst ravages of extreme weather.
Canada examining how to keep its carbon capture competitive in wake of U.S. incentives
The federal government is looking at how it could alter its carbon capture offerings to keep Canada’s energy industry competitive as the United States moves forward with a more aggressive plan to green its economy.
The U.S. is investing $369 billion US in energy security and climate change programs over the next decade through the Inflation Reduction Act (IRA).
That legislation also dramatically increases the tax credits available to facilities that capture and store carbon emissions. Carbon capture, utilization and storage (CCUS) has been a push from governments and industry as many countries work to decarbonize energy production.
Through the Daily Updates, the GNCC aims to deliver important business news in a timely manner. We disseminate all news and information we feel will be important to businesses. Inclusion in the Daily Update is not an endorsement by the GNCC.
