A tale of two contrasting sets of economic priorities. The U.S. economy continues to outpace all economic forecasts. Recently U.S. retail sales, wage growth and housing starts have exceeded all expectations. Tomorrows announced U.S. GDP growth is positioned to exceed all previous doomsayer predictions from the professional financial back-bench.
However, the economic results in Canada are going in the opposite direction. The Bank of Canada cut their GDP forecast from 1.7% to 1.2% today. A forecast drop of half a percent is a massive drop considering the prior rate of growth was meager at best.
Two full years into the advancement of America-First priorities, the international community is now admitting they can only find growth and value in U.S. investments.
(Via Reuters) […] The [Canadian] central bank now expects economic growth in the first half of 2019 to be lower than anticipated in January, when it released its last monetary policy report, due to a slowdown in Canada’s oil sector, the negative impact of global trade policies and a weaker-than-expected housing sector.
It lowered its gross domestic product (GDP) growth forecast for the year to 1.2 percent from 1.7 percent in January, and said it was monitoring the impact of developments in household spending, oil markets and global trade. (read more)
With the slow-bleed continuing we can expect to see Canada quietly putting pressure on their U.S. liberal counterparts to support the USMCA. Yes, the irony is delicious. Ms. Freeland will try to stay under the radar while supporting Trump’s trade construct.
Meanwhile, U.S-China trade talks are due to resume next Tuesday, as negotiators USTR Lighthizer and Secretary Mnuchin head to Beijing with wind in their economic sails….