Assignment 2: Economic Growth & GDP by https://padlet.com/filipleszczynski/hbc6coq738dua5qh Made with ♥ en-us 2022-04-11 23:07:11 UTC 2022-04-15 00:48:39 UTC hello@padlet.com Introduction filipleszczynski https://padlet.com/filipleszczynski/hbc6coq738dua5qh/wish/2143098402 Hello reader! This padlet wall is meant to review and briefly analyze the effects of the recent market distributions, and how they have affected the Canadian GDP. It will mainly focus on analyzing the economic losses experienced during the Covid-19 pandemic, as well as the recent military conflict in Europe and its effects on Canada as it is recovering from the Covid-19 Pandemic. Hope you enjoy the read!]]> 2022-04-13 23:31:55 UTC https://padlet.com/filipleszczynski/hbc6coq738dua5qh/wish/2143098402 Picture 1 filipleszczynski https://padlet.com/filipleszczynski/hbc6coq738dua5qh/wish/2143289222 This picture gives a visual demonstartion on the effects of the Covdi-19 pandemic on the canadian GDP. Surprisingly, not all provinices were in a decrease, as Yukon and Nunavut actually rose in GDP. This was most likely caused by the large population of the provinces, allowing most businesses to operate. The severe decline in Alberta's and North western Territory's will be elaborated in Article 1. Overall, the impact of the pandemic had severely decreased the national GDP, by approximately 5.3% in 2020]]> 2022-04-14 02:26:17 UTC https://padlet.com/filipleszczynski/hbc6coq738dua5qh/wish/2143289222 Picture 2 filipleszczynski https://padlet.com/filipleszczynski/hbc6coq738dua5qh/wish/2144021499 This picture shows a more detailed breakdown of how the Covi19 pandemic has effected the Canadian GDP in the first months. Initially, the decline is seen as 2%, as not all business restrictions were in place, and the public was not fully aware of the consequences of the virus. As the rest of the restrictions came into effect, the GDP saw a massive decline of approximately 12%, as not only did all the restrictions became active, but as a consequence, economy stimulation and household spending reached a severe and sudden contraction. As such, the effect on the GDP was detrimental and took for the government to stimulate the economy via grants such as CERB for it to rebound (seen from July through Q4 of 2020)]]> 2022-04-14 15:26:16 UTC https://padlet.com/filipleszczynski/hbc6coq738dua5qh/wish/2144021499 Article 1: Alberta's GDP plummeted most of all provinces in 2020, while N.W.T. hit hardest in country filipleszczynski https://padlet.com/filipleszczynski/hbc6coq738dua5qh/wish/2144035163 This article details the reasons for the foreseen decline in the province of Alberta (-8.2%) and touches up on the decrease in N.W.T (-10.4%) . Alberta has seen this major decline, as gas prices have reached record low prices, as demand has plummeted due to travel and business restrictions. In fact, gas prices have actually reached a negative value per barrel, resulting in suppliers experiencing massive losses. In particular, support activities associated with the oil sector dropped 40.8% during the initial period of the pandemic. As Alberta's main source of their provincial GDP is oil and energy, combined with all other factors resulted in their significant loss.

The main source of economic growth for N.W.T. is their 2 diamond mines, which due to travel restrictions on non-essential goods had a severe effect on the demand for the diamonds provided by the province. Due to their smaller economy, the effect of this lack of demand resulted in a larger decrease in GDP as compared to Alberta.

canada-alberta-nwt-economy-gdp-decline-2020-1.6011902

]]> 2022-04-14 15:37:00 UTC https://padlet.com/filipleszczynski/hbc6coq738dua5qh/wish/2144035163 Article 2: Economic Impact on Canada of the War in Ukraine filipleszczynski https://padlet.com/filipleszczynski/hbc6coq738dua5qh/wish/2144046064 This article discusses the recent market disruptions and their effect on the Canadian economy, caused by the Ukraine conflict. First, the article points out the sanctions placed upon Russia, which is the major trading partner of the West. This includes Canada, thus this can have a severe effect on the economy in the coming months. Additionally, Ukraine is a major supplier of agricultural goods (along with Russia and Belarus). This in turn can have a great effect on consumer spending as well as a negative effect on the food industry around the globe. This, has resulted in an inflation rate spike of 1.2% this year, and 0.9% to the 2023 rate. As the state of the economy is currently not ideal for the average Canadian, this can have a negative effect on business as well as economy stimulation as a whole, which can continue the recession we have been experiencing since 2020.

Later in the article, a graph is shown how each sector has been expected to perform due to this, and the most immediate sector affected was the information and cultural services sector, with an estimated 0.2% this year so far.

https://www.conferenceboard.ca/insights/featured/canadian-economics/economic-impact-on-canada-of-the-war-in-ukraine

]]> 2022-04-14 15:46:12 UTC https://padlet.com/filipleszczynski/hbc6coq738dua5qh/wish/2144046064 Article 3: Canadians cutting back spending on groceries, restaurants as inflation rises: poll filipleszczynski https://padlet.com/filipleszczynski/hbc6coq738dua5qh/wish/2144059412
This article further elaborates on the previously mentioned decreasing commodity spending, particularly in the food and restaurant sector. Consumers in Canada see the rising inflation rates as a major concern having the resulting effect on lowering demand for certain goods. This combined with the inflation rates as well as the rising costs of certain goods due to the Ukraine conflict, can have a positive feedback loop on the decreasing GDP, resulting in decreasing GDP rates in all aspects.

The article particularly points out how people are spending less on restaurants as well, resulting in even less stimulation of the economy and can result in more business failing.

In conclusion, the current 5.1% inflation rate is accelerating along with the the GDP remaining at risk of declining as well.

https://www.ctvnews.ca/canada/canadians-cutting-back-spending-on-groceries-restaurants-as-inflation-rises-poll-1.5824545]]> 2022-04-14 15:57:04 UTC https://padlet.com/filipleszczynski/hbc6coq738dua5qh/wish/2144059412 Article 4 Canada’s Q4 GDP beats estimates, showing Omicron resilience filipleszczynski https://padlet.com/filipleszczynski/hbc6coq738dua5qh/wish/2144066996 https://globalnews.ca/news/8651965/canadas-gdp-omicron-growth/=

This article focuses on how the Canadian economy is finally beginning to recover from the Covid-19 pandemic and the more recent Omicron variant. In 2021, the GDP has grown approximately 4.6%, a stark contrast from the 5.3% decline of 2020. In addition the Canadian GDP has grown 0.2% in January, showing people may be more motivated to spend than previously expected. This is despite the Omicron Variant being present in January, which surprised economists and analysts. Most likely cause of this was due to consumer restlessness, and eagerness to improve their quality of life by spending more on recreational activities and other positive incentives. It is safe to say the Canadian economy is very unpredictable, with a good chance of improvements in the coming months. ]]> 2022-04-14 16:03:26 UTC https://padlet.com/filipleszczynski/hbc6coq738dua5qh/wish/2144066996 Video 1: How was Canada's economy performing prior to the COVID recession? filipleszczynski https://padlet.com/filipleszczynski/hbc6coq738dua5qh/wish/2144078380 https://www.youtube.com/watch?v=rCvpIRhrZM4

This video discusses how the economy performed prior to the Covid-19 recession. The data presented shows a downward trend since the year 200 in Real GDP/capita, private sector growth and the average change in business investment. What this article fails to acknowledge is the rise of alternate investment strategies such as cryptocurrencies and NFTs, which account for a significant unaccounted growth in Real GDP/capita. In addition, the video does not reflect private sales, which since the year 2015 have risen due to the availability of marketplaces such as Kijiji and Facebook Marketplace. Needless to say, the trend is worrying, however it does not reflect the full picture.

]]> 2022-04-14 16:13:41 UTC https://padlet.com/filipleszczynski/hbc6coq738dua5qh/wish/2144078380 Video 2: Canada can deliver 4.2% GDP growth this year, a very strong number: Chief economist filipleszczynski https://padlet.com/filipleszczynski/hbc6coq738dua5qh/wish/2144086009 https://www.bnnbloomberg.ca/video/canada-can-deliver-4-2-gdp-growth-this-year-a-very-strong-number-chief-economist~2400865

This video discusses the surprising rise in GDP seen in 2021. The main source discussed was the massive job growth, as the unemployment rate has drastically decreased in the last year, given the easing restrictions. Many individuals who were laid off managed to find other work or return to their place of employment, reflecting positively on the GDP. As a result, the GDP of 2022 is expected to rise another 4.2% this year. This is despite the Ukraine conflict, as the video discusses how the Canadian economy is surprisingly not that dependent on those regions for exports, and can in fact benefit as Canada produces large quantities of components for fertilizer, which are mainly produced by the recently sanctioned Belarus and Russia.
The video also discusses the rising household debt, which may be a concern in the future.

]]> 2022-04-14 16:20:45 UTC https://padlet.com/filipleszczynski/hbc6coq738dua5qh/wish/2144086009 Video 3: Here's how war in Ukraine could impact Canada's economy filipleszczynski https://padlet.com/filipleszczynski/hbc6coq738dua5qh/wish/2144468621 https://www.youtube.com/watch?v=H9aO-dDl4Dg

This video discusses the potential effects of the Ukraine conflict on Canadians, particularly from Saskatchewan's point of view. The main causes discussed are the main consequences of the fore mentioned sanctions placed on Russia. The main concern lies in the food sector, as many agricultural goods come from the sanctioned country, and their allies (Belarus). Mainly the supply of wheat will have the largest and most immediate affect on the lives of Canadians, as it is a crucial ingredient of many major household meals and kitchen products.
On the other hand, the sanctions could have a somewhat positive benefit on the Canadian economy, as Saskatchewan is one of the top suppliers of a major product involved in the production of fertilizer, which could potentially have a higher demand and could potential stimulate our economy further by new job creation in the sector. ]]> 2022-04-15 00:38:53 UTC https://padlet.com/filipleszczynski/hbc6coq738dua5qh/wish/2144468621 Video 4: What the pandemic public spending spree will mean for Canada’s post-COVID economy? filipleszczynski https://padlet.com/filipleszczynski/hbc6coq738dua5qh/wish/2144476077 https://www.youtube.com/watch?v=pm_rV_JneI8

This video covers one of the main consequences of the Covid-19 pandemic, which is the overall rise in household debt. It covers both the potential benefits, as well as some more severe and immediate negatives. As the GDP has been stagnating, the economy is in the right position to be stimulated by more spending. People taking out more loans could is actually a predictable response, especially since many individuals have not seen an increase in wage along with the fore mentioned inflation rise. Moreover, the unemployment rate drop can indicate that many people will be able to pay off said debt, having a sustainable rise in the nations GDP.

This rise in debt has an obvious other side however. The main challenges are seen by younger individuals in provinces such as Alberta, where the main industry (oil) has actually not been producing the jobs in the sector, leaving many potential and qualified employees jobless, or settling for a job they are underqualified for. This can actually be seen as a sign of fearful consequences to come, and is proof that the challenge faced is not always reflected in statistics.]]> 2022-04-15 00:48:26 UTC https://padlet.com/filipleszczynski/hbc6coq738dua5qh/wish/2144476077