OECD tells Canada it needs to do more to cool its hot

admin lxcyev , , , , ,

The Organization for Economic Co-operation and Development says Canada’s economy is growing so fast the country might soon hit full employment, but it remains worried about “overheating” housing markets in Vancouver and Toronto.Canada’s gross domestic product will grow by 2.8 per cent during 2017, double last year’s pace, the Paris-based think-tank projects, fuelled by gains in household wealth, a pick-up in oil and gas industry investment, low interest rates and government spending.“The federal government’s mildly expansionary fiscal stance will hasten the economy’s return to full employment,” the organization said in a report released Wednesday. “The labour market is strengthening. The unemployment rate is down about half a percentage point from a year earlier, and more people are coming into the labour force.”Don’t expect strong first quarter GDP numbers to continue, Capital Economics warns‘Some real problems with Canada’: Muddy Waters founder says Home Capital selloff among nervous-investor signalsStatistics Canada will release its jobs report for May on Friday. The unemployment figure for April was 6.6 per cent, and economists expect little change.But the OECD is concerned about the housing markets in Toronto and Vancouver. The OECD thinks Canada’s economy is expanding fast enough for the Bank of Canada to push interest rates higher toward the end of this year, and is hoping higher interest rates could help cool the housing markets in those cities.Provincial governments in Ontario and B.C. have introduced transfer taxes that aim to ease the Toronto and Vancouver residential real estate markets, but the OECD said the impact from those taxes will likely be short-lived.The OECD is also concerned that a broad expansion of rent controls in Ontario may discourage the construction of new rental buildings. This may actually harm the people Ontario’s new rules are supposed to help, the OECD said. “Low rental supply would hamper labour mobility — particularly for the poor and the young.”But rate hikes and transfer taxes won’t fully address the risks the Canadian economy faces from a “disorderly” housing price correction, the OECD said.The Canadian government last year introduced some rules that are designed to keep riskier borrowers out of the housing market. The OECD said Canada needs to bring even more of this type of “macro-prudential” regulation. For example, it said Canada could use different debt-to-income constraints in regions that have high home prices.“Higher interest rates will take some of the wind out of booming housing markets and rapidly rising house prices,” the OECD said. “Nevertheless, macro-prudential measures, which were strengthened during 2016, should be tightened further to address economic and financial risks related to the housing market.”The OECD’s outlook for Canada is quite bullish. The OECD’s forecast tops the Bank of Canada’s estimate for Canadian growth this year of 2.6 per cent. The OECD also puts the Canadian economy well out in front of the U.S., which the think-tank expects will grow 2.1 per cent this year.Canada’s economy is getting a push from what the OECD described as the federal government’s “mildly expansionary” deficit spending. Federal government spending accounted for 1.9 per cent of Canada’s 2016 GDP, up from 0.8 per cent the year before.But the OECD is also expecting the private sector to drive growth. Business investment dropped sharply after the downturn in the oil and gas sector, but the OECD now sees signs of a “modest” pick-up in investment, particularly if oil remains above US$50 a barrel.Indeed, although the OECD expects Canada’s economy to grow at a slower rate of 2.3 per cent in 2018, it’s looking for boosts in business investment and exports to keep the country’s economy expanding at a rate ahead of inflation.And Canada needs that business investment and export growth. Canada’s recent economic gains have been due to private consumption, housing investments and government spending. The OECD said those increases aren’t sustainable because they haven’t been matched against gains in income or output.The OECD said Canada faces several potential downside risks, chief among them the possibility of a “disorderly” decline in the Toronto and Vancouver housing markets.“Such a correction would reduce residential investment, household wealth and consumption. A sufficiently large shock could even threaten financial stability,” it said.The OECD also cautioned that Canadian export growth could be hit by protectionist measures, such as recently imposed U.S. tariffs on Canadian softwood lumber.Financial Post [email protected] twitter.com/vonhasselbach

You May Also Like..

Utah plays Cleveland, aims for 6th straight victory

first_img FacebookTwitterLinkedInEmailSALT LAKE CITY (AP)-Cleveland Cavaliers (17-29, 12th in the Eastern Conference) vs. Utah Jazz (34-11, first in the Western Conference)Salt Lake City; Monday, 7 p.m. MDTBOTTOM LINE: Utah seeks to prolong its five-game win streak with a victory over Cleveland.The Jazz have gone 19-2 in home games. Utah is second in the NBA with 48.2 rebounds led by Rudy Gobert averaging 13.3.The Cavaliers have gone 6-17 away from home. Cleveland is seventh in the Eastern Conference with 12.3 fast break points per game led by Collin Sexton averaging 3.5.The teams meet for the second time this season. The Jazz won 117-87 in the last matchup on Jan. 12. Donovan Mitchell led Utah with 27 points, and Cedi Osman led Cleveland with 17 points.TOP PERFORMERS: Gobert is scoring 14.6 points per game and averaging 13.3 rebounds for the Jazz. Mitchell is averaging 30.6 points and 4.5 rebounds while shooting 48.6% over the last 10 games for Utah.Darius Garland leads the Cavaliers averaging 1.8 made 3-pointers while scoring 16.6 points per game and shooting 39.6% from beyond the arc. Larry Nance Jr. is averaging 11.6 points and 7.6 rebounds while shooting 48.6% over the last 10 games for Cleveland.LAST 10 GAMES: Jazz: 7-3, averaging 119.1 points, 49.2 rebounds, 22.9 assists, 7.1 steals and 5.9 blocks per game while shooting 46.5% from the field. Their opponents have averaged 112 points on 45.9% shooting.Cavaliers: 3-7, averaging 99.7 points, 40.8 rebounds, 22 assists, 8.4 steals and 4.8 blocks per game while shooting 43.7% from the field. Their opponents have averaged 107.3 points on 47.1% shooting.INJURIES: Jazz: Udoka Azubuike: out (ankle), Mike Conley: out (rest).Cavaliers: Taurean Prince: out (shoulder), Jarrett Allen: out (concussion), Collin Sexton: day to day (hamstring), Matthew Dellavedova: out (abdominal/appendicitis), Kevin Love: out (calf). Written by March 29, 2021 /Sports News – Local Utah plays Cleveland, aims for 6th straight victorycenter_img Associated Presslast_img

RICS HQ off Parliament Square is closed for the day following Westminster outrage

first_imgThe Royal Institution of Chartered Surveyors has shut its office for the day following the suspected terrorist incident yesterday outside parliament.Its offices, which are on Parliament Square, were evacuated yesterday following police advice and today its staff are working via alternative working arrangements as business continues as usual.RICS says its 12, George Street address just off Parliament Square remains closed and that “our headquarters serves as a conference centre and offices and welcomes many travelling visitors each day”, a RICS statement says.“We have a duty of care to all those who visit and work with us.“As our headquarters is located at the centre of what remains a major crime scene, we took the decision, once ordered to evacuate, that we close the building today to visitors.”“Our thoughts are with all those who have suffered in this incident and their families.”RICS has been based at 12 George Street since the organisation was established in 1868 although most of its support functions are carried out by staff at its Coventry office.A minute’s silence is due to be held at 9.33am this morning to honour those who lost their lives during yesterday’s tragic events in Westminster.incident RIDS Westminster March 23, 2017Nigel LewisWhat’s your opinion? Cancel replyYou must be logged in to post a comment.Please note: This is a site for professional discussion. Comments will carry your full name and company.This site uses Akismet to reduce spam. Learn how your comment data is processed.Related articles Letting agent fined £11,500 over unlicenced rent-to-rent HMO3rd May 2021 BREAKING: Evictions paperwork must now include ‘breathing space’ scheme details30th April 2021 City dwellers most satisfied with where they live30th April 2021 Home » News » RICS HQ off Parliament Square is closed for the day following Westminster outrage previous nextRICS HQ off Parliament Square is closed for the day following Westminster outrageOrganisation says it has a duty of care to staff and visitors as major police investigation in area continues.The Negotiator23rd March 201701,009 Viewslast_img

Humberts opens first regional hub in Dorset and prepares to open second in Kent

first_imgHumberts has begun rolling out its much-vaunted ‘hub’ system for its non-franchised offices, the Negotiator has learned.This includes the closure of its other high street branches in the South West and the start of the same process in the South East.Last month the company said it was to move its high street operations to new centralised high-tech hubs which would service entire regions or counties. Many staff are understood to be mobile rather than based day-to-day at the hubs.The first hub is in Poundbury, Dorset for the SW, which has opened earlier than expected, and the next hub is to be in Tunbridge Wells in Kent to serve the SE.This is part of Humberts’ plan to make the company profitable again by cutting the huge cost of multiple high street branches, a move it has framed as expanding “expertise across each respective county by employing more Property Consultants in the field and specialising in entire counties, rather than just small pockets”.Hybridisation?When originally announced the move was hailed as the first signs of ‘hybridisation’ within the wider industry as agents cut high street locations and move to hubs instead.“Responding to our consumer’s needs is the driving force of where we are taking Humberts – to make the company relevant to the market today,” said Humberts CEO Matt Spence, who is also the founder of Natural Retreat which bought Humbers in May just weeks after over 50 senior and junior staff’s roles were made redundant via a conference call.Humberts property hubs matt spence August 24, 2018Nigel LewisWhat’s your opinion? Cancel replyYou must be logged in to post a comment.Please note: This is a site for professional discussion. Comments will carry your full name and company.This site uses Akismet to reduce spam. Learn how your comment data is processed.Related articles Letting agent fined £11,500 over unlicenced rent-to-rent HMO3rd May 2021 BREAKING: Evictions paperwork must now include ‘breathing space’ scheme details30th April 2021 City dwellers most satisfied with where they live30th April 2021 Home » News » Agencies & People » Humberts opens first regional hub in Dorset and prepares to open second in Kent previous nextAgencies & PeopleHumberts opens first regional hub in Dorset and prepares to open second in KentCompany appears to be accelerating its programme of opening centralised off-high-street ‘hubs’ and is already preparing to open its second one in Tunbridge Wells.Nigel Lewis24th August 201801,990 Viewslast_img

Leave a Reply

Your email address will not be published. Required fields are marked *