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This link provides an overview and economic update for the year 2023. It showcases a great in-depth analysis of the current economic situation that Canada is facing; as well as giving some future projections. The update produces an analysis with data about various aspects like GDP growth, inflation, and the unemployment rate. Further expanding on the fiscal policies and spending plans that the government will pursue, to overcome some hurdles that the economy has been facing.

The reason for choosing this website is to showcase the state of the economy from the government's perspective. The source is directly from the government, so most likely the data that's presented is accurate. Not only this aspect, but the report also sheds light on future projections of the economy. This could be useful to read about, in the context of understanding what policies and approaches the government is going to take in the future.

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Following a strong recovery from the pandemic recession, Canada's economy has remained resilient. Our unemployment rate remains low, over a million more Canadians are employed compared to when the pandemic hit, and wage growth has outpaced inflation for the past nine months. The International Monetary Fund (IMF) projects that Canada's economic plan will deliver the strongest economic growth in the G7 next year (Chart 1), despite a subdued global economic outlook.

Yet for many Canadians, this remains a challenging time. Higher housing costs and still-elevated consumer prices are putting pressure on families every month. To combat inflation around the world, the world's central banks have implemented the steepest series of interest rate increases in decades. These interest rate increases have led to a slowing of the Canadian economy, though private sector economists do not expect inflation to return to 2 per cent until the end of 2024.

The government's economic plan is helping Canadians navigate these economic headwinds. Investments in Canadians-ranging from the Canada Child Benefit, to enhanced benefits and pensions for seniors, to stronger public health care and a Canada-wide system of affordable early learning and child care-have supported Canadians' incomes and higher numbers of Canadians participating in the labour force, including a record number of working-age women. Historic investments in infrastructure and Canada's growing clean economy will have both short- and long-term economic benefits-helping to create good careers, vibrant communities, and grow our economy for decades to come. Supported by one of the most competitive tax regimes in the first half of 2023, Canada received the third-most foreign direct investment in the world (Chart 2), which is helping to drive economic growth in communities across the country.

Against this backdrop, the government is also delivering on its commitment to responsible fiscal management. As a result of the government's economic plan, Canada has had the fastest rate of fiscal consolidation in the G7 since the depths of the pandemic and maintains both the lowest deficit- and net debt-to-GDP ratios of all G7 countries (Chart 3). In fact, Canada's net debt as a share of the economy is still lower today than in any other G7 country prior to the pandemic. Over the past three years, despite a volatile global economic environment, the government's responsible economic plan has enabled year-end financial results to consistently better annual deficit targets. This continued commitment to responsible fiscal management, which is the foundation of Canada's AAA credit rating, is essential to the government's ability to continue investing in Canadians and the Canadian economy in the years to come.

1. Recent Economic Developments

Progress on Reducing Inflation

As the global economy recovered from the pandemic, inflation emerged as a major global economic challenge. This reflected a range of external factors, including pandemic-driven economic disruptions, such as lockdowns in China and manufacturing backlogs, as well as surging global commodity prices following Russia's illegal full-scale invasion of Ukraine. Following an easing of these global supply-side challenges and the swift increase in interest rates by central banks around the world, inflation has come down significantly over the past year.

Headline inflation in Canada fell from its June 2022 peak of 8.1 per cent to 3.8 per cent in September 2023 (Charts 4 and 5), while food price inflation has fallen from 11.4 per cent in January 2023 to 5.8 per cent in September 2023.

However, the cost of housing remains high, and core inflation measures have remained elevated. Decisions by Saudi Arabia and Russia to cut oil supply have also led to an increase in global energy prices, reversing some of the previous decreases in Canada's headline inflation. Oil prices remain volatile, reflecting uncertainty about global demand and supply conditions, including the impact of the sharp tightening in global financial conditions, notably from higher long-term interest rates, and geopolitical uncertainty stemming from the conflict between Israel and Hamas following the Hamas terrorist attacks perpetrated against Israel.

In response to elevated inflation, central banks around the world have implemented interest rate increases in a swift and coordinated fashion. Since early 2022, the Bank of Canada has increased from historic lows its benchmark interest rate by 4.75 percentage points to 5 per cent in July 2023 and held it steady since. This is the fastest monetary policy tightening cycle since the early 1980s, and the highest benchmark rate in more than 20 years. These actions, combined with global interest rate increases and market uncertainty over how long interest rates may need to remain elevated, have led to a slowing of the Canadian economy and higher borrowing costs for Canadians, businesses, and the government. With core inflation remaining elevated and the full effect of higher interest rates still to materialize, the Bank of Canada projects inflation to be about 3.5 per cent until around the middle of next year before returning to 2 per cent in 2025.

Stabilizing Prices and Making Life More Affordable

Chart 6
Agriculture Prices and Food Inflation

Chart 7
Consumer Price Index for Child Care, Food, and Housing

Canada's Jobs Market and Economic Fundamentals Remain Strong

Canada's recovery from the pandemic marked the fastest recovery of the past four recessions (Chart 8). Emergency federal spending, including the Canada Emergency Wage Subsidy and small business supports which helped keep businesses afloat and Canadians on payroll, helped Canada avoid the longer-lasting impacts that have been typical of other economic downturns. Throughout the subsequent period of elevated inflation and rising interest rates, the Canadian economy has demonstrated sustained strength, with Canada posting the fastest growth in the G7 over 2022 and the first half of 2023 (Chart 9).

Among the factors aiding this robust economic activity has been strong population growth. Canada's population has grown by more than double its pre-pandemic pace. A growing number of immigrants, combined with notable improvements in their labour market integration, is positive for Canada's long-run economic prosperity and is a significant economic advantage when compared to the demographic challenges being experienced by many peer countries.

Canada's labour market also continues to be strong. Canada's jobs recovery has been the fastest in the G7 (Chart 10), and over a million more Canadians are employed today than when COVID first hit. The labour market has benefitted from strong population growth and higher labour force participation, including among women (Chart 11). This increased labour supply has been accompanied by a higher share of working-age Canadians employed (Chart 12), helping to meet strong demand for workers across the country and boosting the income of Canadians.

Recently, higher interest rates and weaker global economic activity have led to a slowing in the pace of economic growth in Canada. After growing by 3.8 per cent in 2022 and 2.6 per cent in the first quarter of 2023, the Canadian economy contracted modestly in the second quarter. While part of this decline was tied to temporary factors, including a record-breaking wildfire season and a higher than usual number of strikes, higher interest rates also slowed demand for housing and other large purchases.

As the economy moderates, the labour market remains strong with no notable rise in layoffs. Canada's unemployment rate is currently lower than it was at any time under the previous government and has remained at or below its pre-pandemic level for 21 consecutive months (Chart 13). Canada's strong labour market has also supported solid wage growth, with wages outpacing inflation for the past nine months (Chart 14). Compared to before the pandemic, inflation-adjusted household disposable income has risen by 8 per cent-driven by a 10-per-cent increase in wage income-and inflation-adjusted wealth has increased by 14 per cent. Improvements in household income and wealth have been broad-based across the income distribution, with the lowest income quintiles seeing the largest increases.

2. Canadian Economic Outlook

Private Sector Economists Expect Canada to Avoid Recession

The Department of Finance surveyed a group of private sector economists in September 2023. The average of private sector forecasts has been used as the basis for economic and fiscal planning since 1994, helping to ensure objectivity and transparency, and introducing an important element of independence into the government's economic and fiscal forecast.

Private sector economists have revised their 2023 forecasts since Budget 2023. The Canadian economy is now expected to avoid a recession, and instead see subdued growth in the coming quarters as the impacts of higher interest rates continue to build (Chart 15). A gradual return to stronger growth is then expected over the course of 2024. Overall, private sector economists expect real GDP growth to be 1.1 per cent in 2023-up from the 0.3 per cent projected in Budget 2023. Growth of 0.4 per cent is expected for 2024, compared to the 1.5 per cent projected in Budget 2023, with growth projected to rebound to 2.2 per cent in 2025.

Largely reflecting stronger economic growth, the level of nominal GDP in 2023 is expected to be $32 billion higher than Budget 2023 projections. However, this stronger growth is being tempered by elevated interest rates. With the economy expected to weaken over the next year, this nominal GDP difference with Budget 2023 narrows to zero in 2024 and is lower by $2 billion in 2025. Nominal GDP is then expected to be about $17 billion higher on average per year over 2026 and 2027 compared to Budget 2023 projections, reflecting a better outlook for real GDP and higher GDP inflation in the outer years.

As the economy slows, the unemployment rate is expected to rise to 6.5 per cent in the second quarter of next year, remaining historically low and far below the peaks experienced during recessions (Chart 16). Given solid population growth is expected, much of this adjustment would reflect a slower pace of hiring, rather than a large number of layoffs. The unemployment rate should ease to an average of 6.2 per cent in 2025.

Private sector economists expect CPI inflation to remain at or above 3 per cent through the first quarter of 2024, with an annual average of 3.8 per cent in 2023, consistent with higher global energy prices and recent data suggesting that underlying inflation remains persistent. Inflation is expected to fall below 3 per cent in the second quarter of 2024, reaching 2 per cent by the end of 2024, and averaging 2.5 per cent in 2024 and 2.1 per cent in 2025.

Interest rates are projected to be higher than in Budget 2023, reflecting the economy's resilience, a higher path for inflation in the near-term, and the Bank of Canada's mid-summer resumption of interest rate hikes. On average in the private sector survey, economists expect no further interest rate hikes from the Bank of Canada above the current overnight rate of 5 per cent. The first full rate cut is expected in the second quarter of 2024, with the policy rate gradually declining to 3.75 per cent by the fourth quarter of 2024 and to an average of 2.9 per cent in 2025.

Economic Scenario Analysis

While the September 2023 private sector survey provides a reasonable basis for economic and fiscal planning, the economic outlook is clouded by a number of key uncertainties which could impact the trajectory of inflation, interest rates, and economic growth. In particular, although data on economic growth and inflation released since the survey have been consistent with private sector economists' forecasts, there has been unexpected volatility in oil prices, in addition to elevated long-term interest rates. Oil prices have been volatile since Saudi Arabia and Russia announced steep cuts to oil production and exports in early summer 2023, with WTI hovering at around US$90 per barrel until mid-October and now slightly below US$80 per barrel. Long-term interest rates rose steeply in September in the U.S. and other advanced economies, including Canada, though have since retreated. The increase reflected, in part, market uncertainty over how long interest rates may need to remain elevated in order to bring down inflation. To facilitate prudent economic and fiscal planning, the Department of Finance has developed scenarios that incorporate these recent developments and consider faster or slower growth tracks relative to the private sector economists' survey.

The downside scenario sees a shallow recession in Canada. More persistent underlying inflation-driven by a combination of resilient domestic and global demand, elevated inflation expectations in Canada, and businesses maintaining larger and more frequent price increases-leads to higher interest rates. At the same time, the U.S. also sees persistent inflation, higher rates, and subsequently slower growth. Along with a weak economic recovery in China, this contributes to slower global growth. The combination of higher interest rates and slower global growth results in real GDP in Canada contracting by 1.7 per cent from peak to trough, compared to a period of subdued growth expected in the survey. In addition, slower global growth leads to lower commodity prices, with crude oil prices US$12 per barrel below the survey expectations in 2024. Overall, the level of nominal GDP in Canada is $33 billion below the survey, on average per year, in the downside scenario.

In contrast, the upside scenario sees underlying inflation fall faster than expected in the private sector survey, which allows interest rate cuts to occur sooner. Meanwhile, the healthy labour market and generally resilient household finances continue to support consumer demand, leading to economic growth picking up into 2024. Global demand proves more resilient as China avoids persistent deflation, and resilience in the U.S. labour market supports stronger growth. The improved global outlook, alongside extended crude oil production cuts, leaves oil prices US$10 per barrel above the survey in 2024. Overall, the level of nominal Canadian GDP is $28 billion above the survey, on average per year, in the upside scenario. This is similar to what was projected by the Parliamentary Budget Officer (PBO).

3. Fiscal Outlook

Canada's Responsible Economic Plan

Years of responsible fiscal stewardship have left Canada in an enviable fiscal position relative to our global peers. In the aftermath of the pandemic, the government's responsible economic plan has enabled proactive investments to support Canadians, while also making critical investments in Canada's long-term prosperity.

Including measures in the 2023 Fall Economic Statement and other new policy actions since Budget 2023, and incorporating the results of the September 2023 survey of private sector economists, the budgetary balance is expected to remain just below the $40.1 billion deficit projected for 2023-24 in Budget 2023, at $40.0 billion or -1.4 per cent of GDP. This improves to an $18.4 billion deficit in 2028-29, or about -0.5 per cent of GDP (Table 1).

Alternative Economic Scenarios Analysis

Chart 19
Federal Debt-to-GDP Ratio Under Economic Scenarios

Fiscal Anchor

Since emerging from the pandemic, the government has maintained a commitment to its fiscal anchor: reducing federal debt as a share of the economy over the medium term. This metric is key not only for fiscal sustainability, but also to preserve Canada's AAA credit rating, which helps maintain investors' confidence and keeps Canada's borrowing costs as low as possible.

A strong federal balance sheet has allowed the government to take necessary action in the face of economic shocks, such as the COVID pandemic or the 2008 financial crisis. Fiscal responsibility today gives the government the ability to respond to future challenges.

The economic plan outlined in the 2023 Fall Economic Statement delivers on the government's fiscal anchor, enabling Canada's federal debt-to-GDP ratio to decline from 2024-25 onwards, reaching 39.1 per cent in 2028-29 (Chart 20). In addition, public debt charges as a share of the economy are expected to remain near historically low levels (Chart 21).

With softer growth expected in the near-term, the government is taking further action to continue delivering on its fiscal anchor, as outlined in Chapter 4. To reinforce these actions, the government will be focused on the following fiscal objectives in preparing for Budget 2024:

Maintaining the 2023-24 deficit at or below the Budget 2023 projection of $40.1 billion.

Lowering the debt-to-GDP ratio in 2024-25, relative to this Fall Economic Statement, and keeping it on a declining track thereafter.

Maintaining a declining deficit-to-GDP ratio in 2024-25 and keeping deficits below 1 per cent of GDP in 2026-27 and future years.

Preserving Canada's Fiscal Advantage

The 2023 Fall Economic Statement forecast shows the federal debt-to-GDP ratio lower than its recent pandemic peak and declining in 2025-26 and throughout the remainder of the forecast-consistent with the government's fiscal anchor. The government's economic plan is also projected to remain fiscally sustainable over the longer term. Modelling scenarios based on a set of reasonable economic and demographic assumptions show the federal debt-to-GDP ratio declining from 2025-26 over the entire long-term projection horizon (Chart 22). This is despite adverse demographic trends, including an aging population and assumed modest future productivity growth rates. Sensitivity analysis around these long-term fiscal projections also indicates fiscal sustainability would be preserved under the downside scenario (see Annex 1 for details).

International Comparisons

Canada's net debt as a share of the economy is still lower today than in any other G7 country prior to the pandemic-an advantage that Canada is forecasted to maintain (Chart 23). Canada's economic plan has also delivered the fastest fiscal consolidation in the G7 since the depths of the pandemic, resulting in Canada having the smallest deficit in the G7 as a share of the economy over the current and next two years (Chart 24).

A long tradition of fiscal responsibility continues to be a pillar of Canada's excellent credit ratings from Moody's (Aaa), S&P (AAA), and Fitch (AA+), as well as DBRS Morningstar (AAA). With Germany, Canada is one of only two G7 economies to have a AAA rating from at least two of the three major global credit rating agencies.

Chart 23
IMF General Government Net Debt Projections, G7 Economies

Chart 24
IMF General Government Budgetary Balance Projections, G7 Economies

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fall economic statement; budget planning; public finance; fiscal policy; fiscal update

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economic policy; economic development; social policy

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Building an economy that works for everyone

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This website link gives a report of the Consumer Price Index for October 2023. The CPI increase in October was 3.1% year-over-year. Which was slower than the previous month, which was higher at 3.8%. The report highlights that the reduction in gas prices helped in significantly reduce the CPI. Unfortunately, the CPI without gas was still higher at 3.6%, the report believes that service prices are because of this. Mostly based on consumer goods necessities like food, and rent.

I chose this report because like we learned in class, CPI is a good indicator of inflation in a country. This resource is useful because it provides a direct breakdown of the consumer price index, month by month. The report is in October, so it is relevant to the current events in the Canadian economy. It outlines how much gasoline affects the CPI, and how service costs are steadily increasing each month.

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October 2023

3.1%

(12-month change)

In October, the Consumer Price Index ( CPI) rose 3.1% on a year-over-year basis, down from a 3.8% gain in September. The year-over-year deceleration was largely a result of lower prices for gasoline (-7.8%) in October. Excluding gasoline, the CPI rose 3.6% in October, following a 3.7% increase in September.

While prices for goods (+1.6%) decelerated, led by lower prices at the pump, prices for services (+4.6%) rose at a faster pace in October, largely driven by higher prices for travel tours, rent and property taxes and other special charges.

The largest contributors to the year-over-year CPI increase continued to be mortgage interest cost, food purchased from stores and rent.

On a monthly basis, the CPI rose 0.1% in October, following a 0.1% decline in September. The monthly increase was largely driven by travel tours and property taxes and other special charges, which are priced annually in October. On a seasonally adjusted monthly basis, the CPI fell 0.1%.

Prices at the pump decline

On a year-over-year basis, consumers paid 7.8% less for gasoline in October after a 7.5% increase in September. The decline in October was partly driven by a base-year effect, as prices increased 9.2% on a monthly basis in October 2022 when the Organization of the Petroleum Exporting Countries Plus announced production cuts.

In October 2023, prices for gasoline fell 6.4% month over month. The decline was largely due to lower refining margins, which were partly driven by producers switching to cheaper winter blends.

Grocery prices continue to decelerate, but remain elevated

While grocery prices remained at elevated levels, they also continued their trend of slower year-over-year growth, with a 5.4% increase in October following a 5.8% gain in September. While deceleration continued to be broad-based, fresh vegetables (+5.0%) contributed the most to the slowdown.

Service prices rise at a faster pace

Prices for services put upward pressure on the CPI in October, rising 4.6% on a year-over-year basis, following a 3.9% increase in September.

Canadians continued to feel the impact of rising prices for rent, which rose at a faster pace year over year in October (+8.2%) than in September (+7.3%). The national increase reflected acceleration across most provinces. The largest increases in rent prices were seen in Nova Scotia (+14.6%), Alberta (+9.9%), British Columbia (+9.1%) and Quebec (+9.1%).

Property taxes and other special charges, which are priced annually in October, rose 4.9% on a year-over-year basis, compared with a 3.6% increase in October 2022. The national increase in October 2023 was the largest since October 1992, with homeowners paying more in all but one province, as municipalities required larger budgets to cover rising costs. Property taxes in Manitoba (-0.3%) declined for the third consecutive year, mainly due to a reduction in the provincial education tax.

Prices for travel tours rose 11.3% year over year in October after a decline of 2.2% in September, with faster price growth largely driven by travel to destinations in the United States.

Regional highlights

Year over year, prices increased in all provinces in October but at a slower pace compared with September.

Electricity prices rise at a slower pace in Alberta

On a year-over-year basis, consumers in Alberta paid 45.4% more for electricity in October, down from a 113.0% increase in September. The deceleration was largely a result of a 20.0% month-over-month price decline, coinciding with easing demand.

Prices for natural gas decline in three Western provinces

On a month-over-month basis, natural gas prices fell in Saskatchewan (-6.4%), Alberta (-1.6%) and British Columbia (-6.1%) in October. The declines were a result of lower commodity prices.

Products

The " Consumer Price Index Data Visualization Tool" is available on the Statistics Canada website.

More information on the concepts and use of the Consumer Price Index ( CPI) is available in The Canadian Consumer Price Index Reference Paper ( 62-553-X).

For information on the history of the CPI in Canada, consult the publication Exploring the First Century of Canada's Consumer Price Index ( 62-604-X).

Two videos, " An Overview of Canada's Consumer Price Index (CPI)" and " The Consumer Price Index and Your Experience of Price Change," are available on Statistics Canada's YouTube channel.

Find out answers to the most common questions posed about the CPI in the context of the COVID-19 pandemic and beyond.

Contact information

For more information, or to enquire about the concepts, methods or data quality of this release, contact us (toll-free 1-800-263-1136; 514-283-8300; infostats@statcan.gc.ca) or Media Relations ( statcan.mediahotline-ligneinfomedias.statcan@statcan.gc.ca).

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The Consumer Price Index (CPI) rose 3.1% on a year-over-year basis in October, following a 3.8% increase in September. On a seasonally adjusted monthly basis, the CPI fell 0.1% in October.

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This report for the Canadian Economy in Fall 2023 provides an insightful overview of Canada's economy up until the middle of 2023. It highlights how the rise of borrowing costs has affected many parts of the economy. Some examples are consumer prices and household finances. It also describes how the economy has slowed down due to households spending less, and less investments in housing. Fortunately, inflation is at a moderate rate despite the rising housing crisis.

I chose this link because it highlights the overall state of the economy in Canada. The report does not look specifically at policies or CPI, but rather at what sectors of the economy are having growth. One important thing to take from this link is the relationship between borrowing costs and household spending. Logically, if someone has to pay more on a mortgage or rent, they will have less money to spend in general.

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Website 4 | Article about Fiscal Policy's impact on inflation

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Website 4 | Article about Fiscal Policy's impact on inflation

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This article from the Fraser Institute provides a good critique of how the government handled Fiscal policies during the pandemic and onwards. Throughout the article, it thoroughly argues against the measures taken by the Bank of Canada and the government. Stating that they spent an excess of billions when they did not need to. Also highlights how the spending hasn't decreased as much even after the pandemic. The writer believes that these policies are resulting in higher inflation than we'd normally expect. Even though the economy reached pre-pandemic levels, spending was still high which resulted in 39-year high inflation in mid-2022.

I chose this article because it provides a different perspective on the intricacies of Fiscal Policies and how it can affect inflation negatively. One of the things that stood out to me in this article was the assertion that the government is overspending since the pandemic. Even after the pandemic is over. It also challenges the traditional approach in Canada of showcases some of the long-term effects that these fiscal policies can have.

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Canada's Fiscal Policy Has Undermined Efforts to Tackle Inflation

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This paper draws on a growing literature that finds higher government spending and deficits helped fuel the recent surge of inflation and, therefore, that both monetary and fiscal policy need to be deployed to contain inflation. It is important that the federal government reverse the trend of substantially higher government spending and deficits that began in 2015 and accelerated after 2019.

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This video describes a perspective that most Canadians feel surrounding the economy in Canada. It highlights how the housing crisis does not match up wages. There is significant talent in Canada, but the country is not competitive compared to the US. Much of economic growth is coming from services when we would have much more growth if we used the resources that Canada possesses. Many businesses and startups in Canada are US-based, so they can bypass the tariffs and regulations of Canada. Although people in the lower half of income are better off in Canada than in the US; you have less of an opportunity to flourish if you are talented at your career. Besides these new problems, Canada remains a strong country.

I chose this video because it highlights some of the faults of the Canadian economy. It mentions how inflation plays a role in people wanting to be successful in Canada. As well as how talented Canadians are moving to the US or elsewhere, due to the lack of competitiveness in Canada. Something I found important in this video, was the statistics on car manufacturing and oil. Unfortunately, manufacturing is slowing down, and oil production is expensive as there are no alternative methods to transform crude oil.

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The Problem with Canada’s Economy | Canadian Economy

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Video 2 | October Monetary Policy Report

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Video 2 | October Monetary Policy Report

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This video goes over the monetary policy report for October. They mention that the economy is slowly getting back to its market equilibrium of supply and demand. It also highlights how higher interest rates have helped households and businesses spend less. They are expecting the economy to grow moderately next year, and hopefully, inflation will reach 2% by 2025.

I chose this video because it provides some information on what they are trying to achieve with the monetary policy in the coming years. Something I found surprising during the video, was the fact that they hope to get inflation down to 2% in only over a year. Hopefully, this will happen by 2025. For the reader, it's good knowing what the interest rates are, and what they aim for with the monetary policies.

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Release of the Monetary Policy Report / Publication du Rapport sur la politique monétaire

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Video 3 | Analysis of slow GDP (October)

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Video 3 | Analysis of slow GDP (October)

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This video highlights how since October at least, we are expected to have a very slow GDP growth. In some cases, our GDP may actually decline in the next few months. In the video, they discuss how this is essentially a recession, if not the economy "stalling". This might become an issue because many sectors in Canada are not having much growth, compared to the US.

I think this video is important because it shows the reality of where the economy is currently at. One of the most important things in this video I found was the relation to my Website 4 post. In that post, the writer argued that fiscal policies will negatively affect the economy and cause inflation. As of October, this seems to be true.

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Canada's GDP shows economic slowdown, says new report

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Video 4 | Why inflation occurs in & difficulties nullifying it

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Video 4 | Why inflation occurs in & difficulties nullifying it

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This video dives into understanding how inflation works in general, and its difficulties in reducing it in Canada. The video highlights how the Bank of Canada is raising interest rates to force Canadians to spend less. The only issue is, that there is no data showing how high the interest rate should be raised to. This could cause some issues for the economy, and result in stagnation and increased inflation. Other conflicts or issues like Russia-Ukraine have contributed to the current economy too, which we do not have control over.

I chose to include this video because it explains how the Bank of Canada is trying to control inflation and the economy, by using fiscal policies. It also touches on how hard it is to reduce inflation. One important point in the video he discussed was, that even if you have inflation under control, external factors can still affect it. Things like the Suez Canal blockage or the conflict in Ukraine can negatively impact inflation.

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Why inflation happens and why it's hard to stop

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This image provides a useful analysis of the CPI in Canada. Not only does it provide the CPI, but CPI without gasoline. This measurement is useful because gasoline affects the CPI measurement greatly. Not including gasoline presents a more true CPI for consumer spending. This is a great indicator of inflation in the Canadian economy.

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This image provides a year-to-year chart of the GDP in Canada, since 2018. As you can see in the graph, the Pandemic greatly affected the GDP of Canada. Unfortunately, the economy has slowly stagnated since then. Also, a prediction is given for the next few years.

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Here on this wall, I am posting research based on my topic of Economic Growth and inflation. The contents on this wall heavily relate to growth and inflation in Canada, in recent times.

You can expect to learn a multitude of subjects that all relate to Economic Growth & Inflation. I posted some videos that briefly overview Canada's economic growth in 2023. This also includes why inflation is occurring, the most recent monetary policy, and an analysis of Canada's recent GDP.

Through the websites and images, you should become familiar with the recent monetary policies and the current inflation and economic growth state.