Check out the latest economic trends at a glance.
The Chinese economy has slowed significantly because of the coronavirus, and this has disrupted global supply chains and driven down commodity prices. The impact on global and Canadian economic growth remains uncertain. The Bank of Canada (BoC) expects growth to be lower than anticipated in 2020, but to bounce back in 2021.
The unemployment rate remains low at 5.5 per cent nationally, but is above historical norms in the oil producing provinces, especially Alberta.
Average wage adjustments in collective agreements came in at 1.6 percent for 2019. The private sector average (2.2 per cent) continues to be higher than the public sector average (1.4 per cent).
|Inflation||Core measures of inflation are expected to remain close to 2.0 per cent throughout 2020. Political instability drove gas prices up in January, resulting in higher headline inflation, but core inflation measures that exclude temporary extreme movements show that overall price increases are closer to 2.0 per cent.|
In early March, the BoC lowered its key lending rate from 1.75 per cent to 1.25 per cent. The move came after a meeting of G7 central banks where representatives committed to work together to combat the economic effects of the coronavirus, and an emergency decision by the US Federal Reserve to cut its key lending rate by 0.5 per cent.