GDP Up 0.1% in January
CBJ — Statistics Canada is reporting that the gross domestic product edged up 0.1% in January, just prior to the COVID-19 outbreak.
Reduced trade with China slowed incoming revenue from the 0.3% increase recorded last December.
Manufacturing was up 0.8% in January but transportation fell 1.7%.
The January figures will look very strong compared with what is going to be in store for February and even more so in comparison with March.
Making matters worse for Canada — and particularly for Alberta — international oil prices have plummeted due to a production war between Russia and Saudi Arabia. The glut of oil on the market has left Canadian western oil almost valueless, having dropped below $4 per barrel. Between production and transportation, the cost to send out a barrel of oil typically costs between $10 and $15.
The federal government has announced a plethora of subsidies to support the economy during this difficult time and the Bank of Canada has also reduced its key interest rate target to a scant 0.25% in an effort to support enterprise while also hoping Canadian banks will see fit to drop their interest rates on loans and credit.