RICHMOND-NEWS.COM
BusinessReport Business R I C H M O N D
C H A M B E R
O F
C O M M E R C E
M O N T H L Y
THURSDAY, JUNE 28, 2018
A23
N E W S L E T T E R
SUITE 202 - SOUTH TOWER, 5811 COONEY, RICHMOND. BC. V6X 3M1 | T. 604.278.2822 | F. 604.278.2972 | RichmondChamber.ca
An update on the Canadian economy By Trevin Stratton, Chief Economist, Canadian Chamber. Tariffs. Trade talks. Pipelines. Electoral change. While the Canadian economy continues to grow (albeit somewhat slowly), these are just some of the factors that might slow it down. As we head into summer, and the mid-point of 2018, now is a good time to take stock of Canada’s economic performance and consider what the latter half of the year might have in store for us. The economy stumbled into 2018, slogging its way through weak consumer spending and housing markets. Real GDP increased at a pace of 1.3% in the first three months of 2018 — the slowest quarterly growth in nearly two years. The Canadian economy grew at less than a 2% rate for the third consecutive quarter, a far cry from the nearly 4% average between July 2016 and June 2017. Ongoing insecurity about trade policies continues to cast a shadow over Canada’s outlook. The recent steel and aluminum tariffs imposed by the United States — and the Canadian retaliation — are increasing investors’ concerns about the future of NAFTA, and even what a U.S. withdrawal would mean for Canada. With a new government in Ontario, Canada will have its work cut out to maintain a united front in response to further possible retaliatory measures.
Further complicating matters are the extraordinary measures taken by the federal government to buy the Trans Mountain pipeline—a step that never should have been necessary. This is another sign that we need to take a long hard look at our broken regulatory system and ensure Canada remains an attractive place to invest and do business. The good news is that economic growth seems poised to accelerate. While the cumulative result was
improving with stronger momentum going into Q2. The bad news is that uncertainty about a variety of economic issues is weighing on business investment. Any optimism about the economy taking a turn for the better is tempered by the risk that uncertainty will drive investment away from Canada. Imports declined in April, indicating that business investment and domestic demand were scaled back during the month. These developments have heightened the existing doubts about Canada’s business competitiveness. The Canadian tax system is losing relative competitiveness compared to its peers due to recent tax reform in the United States and France. Significant uncertainty also surrounds how the Canada Revenue All eyes are on U.S.-Canada trade relations Agency will assess the new small business tax changes in the 2018 disappointing, the quarter finished Budget. These factors are causing strong with February GDP up 0.4% business investors to seek other month-over-month, followed by a markets or sit on their wallets. 0.3% increase in March. The outlook for business investExports increased 1.6% in April, ment is crucial because everything a good sign for an economy that else the Bank of Canada usually will need export markets to make considers in monetary policy decia bigger contribution to growth in sions suggests the economy can place of consumer spending. This handle higher borrowing costs. encouraging finish has hastened The central bank has been cauconfidence that the economy is tious thus far but recently signalled
that higher interest rates will be warranted and that the governing council will take a gradual approach to policy adjustments. The current data on economic growth supports this. Canadian households may be able to manage rising mortgage and consumer debt, as long as Canada’s economy continues to grow and unemployment remains relatively low. However, the risk that Canada’s economic prospects and investor confidence can be derailed by any number of uncertain issues remains high. The IMF’s recent mission to Canada concluded that our economic outlook is subject to significant risks — including a sharp correction in the housing market and a banking system with heavy exposure to household and corporate debt. The Canadian Chamber of Commerce’s Crystal Ball Report predicted uncertainty for Canada’s economic and political outlook in 2018. Financial and economic imbalances have created a tenuous economic recovery. Rising protectionism has the potential to escalate into a trade war. Markets and business models are being disrupted by new technologies and opportunities. Overall, Canadian businesses are grappling with the speed of change. Adding to this, Canada’s economic performance in the first half of 2018 demonstrates that one of the few certainties in today’s economy is an enduring state of uncertainty.
The Richmond Chamber of Commerce • Published Monthly
The Richmond Chamber of Commerce has been “Proudly serving our community since 1925.” In partnership with local media the Chamber produces the Business Report once per month. The statements and views expressed in this publication are not necessarily those of the publisher. The publication’s intent is to keep Chamber members, and prospective members, informed on important information, events, and educational items. The Richmond Chamber of Commerce is located at Suite 202 - North Tower 5811 Cooney Road, Richmond, BC, V6X 3M1. For more information and to reserve tickets for the events, please call 604-278-2811, email rcc@ richmondchamber.ca, or see us online at: richmondchamber.ca .
Canada’s #1 Plan
for Employee Benefits
Chambers Plan Employee Benefits
See why 30,000 business owners selected this plan! chamberplan.ca
Upcoming Events
Chamber Partners: -Vancouver Airport Authority -Port of Vancouver -Chambers of Commerce Group Insurance -Scotiabank -Kwantlen Polythechnic University -WorkSafe BC -Motion Pay Technologies - PLLR Lawyers
July 11 Networking Breakfast - Richmond Olympic Oval, 6111 River Road - A focused morning of networking before 9 a.m. - Tickets: $30 general admission; $20 Chamber members - See RichmondChamber.ca
July 19 Annual Summer BBQ - Annual Summer BBQ poolside at the Sheraton Vancouver Airport Hotel. - Relax on the patio with old friends, or meet new ones at the Chamber’s annual summer BBQ. - 11:30 a.m. – 2 p.m. General admission: $59 + GST; Chamber members: $49 + GST
August 8 Networking over dim sum - Dim Sum Networking at Shun Feng Seafood Restaurant. - This afternoon networking session features the organized roundtables members love at breakfast, with a dim sum menu and lots of time to mingle. - General admission: $40 + GST; Chamber members: $20 + GST
We have your profitable advantage • Avoid escalating health care costs • Be proactive rather than reactive
Computer Security Inc.
Specializing In
Cyber Security & Professional Investigations
• Customized Employee Benefits • Group Retirement Programs • Health Spending Accounts
CALL THE EXPERTS TODAY!
604-270-1142
Check us out - www.dupuislangen.com
DALE JACKAMAN
PRESIDENT LICENSED PRIVATE INVESTIGATOR LICENSED SECURITY CONSULTANT (604) 230-8114 amuleta.com info@amuleta.com
Licensed Professional Investigators Licensed Security Consultants Technical Surveillance Countermeasures (bug sweeps) Intellectual property protection Incident response IT with a security focus Risk assessment and evaluation Executive cyber protection Specialized search and seizures
Email: info@dupuislangen.com
iglfin@shawcable.com • 1-888-818-2942 • 604-607-7353
Proudly Serving Richmond - 30 years!
Regulated under the Security and Services Act of British Columbia