Macklem Says Canada Is Adapting to 3 Structural Shifts as Growth Resumes
Updated
Updated · Forex Factory · Sep 21
Macklem Says Canada Is Adapting to 3 Structural Shifts as Growth Resumes
3 articles · Updated · Forex Factory · Sep 21
Summary
Six months after warning of deep structural change, Tiff Macklem said Canadian businesses and households are now adjusting and the economy is growing again.
Three forces are driving that adjustment: heightened trade tensions, rapid advances in artificial intelligence, and demographic change reshaping labour supply and demand.
Businesses are adapting supply chains and investment plans to the new trade environment, while households and firms are also responding to shifting prices and labour-market conditions.
In related remarks on Atlantic Canada, Macklem said the region is less exposed to U.S. tariffs but more vulnerable to inflation and higher oil costs, even as unemployment in Nova Scotia remains below pre-pandemic and national levels.
As U.S. tariffs batter central Canada, will Atlantic Canada's unexpected economic resilience trigger a massive shift in national investment strategies?
If global oil shocks dictate local inflation, is the Bank of Canada powerless to protect Atlantic Canadians relying on furnace oil this winter?
With Nova Scotia wages lagging behind soaring heating costs, can billions in shipbuilding contracts save households from an impending winter financial crisis?