Canada’s addiction to real estate-driven growth won’t be easy to break, being such a large share of the economy. Statistics Canada (Stat Can) released annual provincial data for Real Estate and Rental and Leasing (RERL). RERL is a share of gross domestic product (GDP) sourced from real estate services. Over the past two decades, RERL […]
Canada will need to pump the breaks to stabilize its overheated economy. That was the message from RBC Economics’ latest research on inflation. Sky-high inflation has forced central banks to adopt an aggressive rate hike schedule. Cooling inflation (and the economy) with rapid rate normalization is now the plan. The slowdown is expected to begin […]
Canada’s economy is demonstrating it has no clue where to find growth if not through a housing mania. Statistics Canada (Stat Can) data shows the gross domestic product (GDP) advanced in Q1 2022. Nearly half of the quarter’s growth was due to residential investment, or homebuilding. Housing has produced such lofty gains, it’s become hard […]
There’s a good reason you might be feeling Canada’s economic recovery, and that’s because of how it’s measured. Canada’s gross domestic product (GDP) ripped higher in Q3 2021 and it’s just shy of the pre-2020 peak. Aggregate GDP measures are only useful for the size of an industry, not how it impacts people. For the […]
Despite Canadian real estate spiraling out of control, the central bank held rates. The Bank of Canada (BoC) attributed the decision to fears of economic risk, but glossed over that fear being a housing slowdown. The BoC’s latest gross domestic product (GDP) forecast shows housing will provide a big drag in 2022. A year ago, […]
Canadian real estate’s economic contribution was slowing, but it’s back with a vengeance. Gross domestic product (GDP) made a big jump in October, with real estate doing a lot of the heavy lifting. A component, real estate and rental and leasing (RERL) provided over a tenth of the monthly GDP increase. RERL showed the biggest […]
Canadians are going all-in on housing, as it’s increasingly seen as a low-risk asset. As debt grows faster than the economy, the ratio of mortgage debt to gross domestic product (GDP) has been soaring. Canada has created so much moral hazard, home prices no longer fall during a recession. Instead, households are leveraging up and […]
The Canadian economy is recovering slower than its peers despite elevated inflation. BMO chief economist Douglas Porter indexed the GDP for Canada, the US, and Australia in Q3 2021. All three economies began as a v-shaped recovery, but Canada is the only one not to hit pre-pandemic levels. Despite signs of a strong economy, like […]
Canadian homeowners are tapping their real estate windfall to fund a spending binge. Bank of Canada (BoC) data shows home equity lines of credit (HELOC) debt surged in September. HELOC debt slowed last year but now it’s back with a vengeance, growing faster than the economy. Experts say it provides a boost to the economy […]
Canadians have been house crazy during the pandemic, and it’s been a big boost to the economy. Now with housing returning to more typical volumes, it’s turned into a drag on the economy. Statistics Canada (Stat Can) data shows real gross domestic product (GDP) slipped lower in July. Even with a pullback, it’s making progress […]
