Question Period Note: General economy

• The Canadian economy is sound and supported by a strong labour market and healthy consumer confidence.
• Canadians have created over 1 million new jobs since November 2015, the unemployment rate is at its lowest levels in more than four decades and Canadian wages are growing at their fastest in a decade.
• The OECD and IMF project solid growth for 2019 and 2020, with Canada expected to be the second fastest growing economy among the Group of Seven countries in both years.
• Investments the Government has made over the last years, to support households, promote export development and business investment, are expected to promote growth now and in the future.

• The global economy likely grow at its slowest pace in 2019 since the Great Recession as ongoing trade tensions have reduced business investment and manufacturing activity.
• Against a backdrop of slowing global growth, the Canadian economy continues to grow at a solid pace.
• Economic growth in Canada is on-track to average 1.5 per cent in 2019 and 1.7 per cent in 2020—this would make Canada the second fastest growing economy in the G7 in both 2019 and 2020.
• Labour market conditions in Canada are the strongest in decades. The unemployment rate stands at its lowest levels in over forty years while the labour force participation rate of working-age Canadians reached an all-time high.
• Over the last year, employment gains have averaged close to 40,000 per month, almost twice the pace seen in recent years.
• While this is good news, the economy will be challenged to maintain this pace of job creation going forward.
• Along with the increasing tightness of the labour market, wage growth has picked up to its fastest pace since 2008. Together with strong employment growth, these wage gains will mean higher incomes for Canadian households.
• While the overall growth picture in Canada is sound, growth remains uneven across regions of the country, reflecting ongoing challenges facing the oil and gas sector.
• Looking ahead, the Canadian economy likely saw soft growth in the second half of 2019, as exports and business investment continue to face ongoing challenges in the energy sector and related to global trade tensions – however, growth is expected to pick up in 2020.

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