Fiscal Trends and the Canadian Economic Outlook-Webinar Presentation

Video Transcription

Video Summary

In this webinar, the speakers discuss the impact of COVID-19 on the Canadian economy and the prospects for recovery. They explain that at the onset of the crisis, the main concern was the disruption of the global supply chain, but as the virus spread, the economy experienced a supply and demand shock. GDP is estimated to have declined by 10% in the first quarter and is projected to decline further in the second quarter. Unemployment rates spiked to 13% in April and over 7 million Canadians claimed government support since mid-March. However, the government's support measures have helped mitigate some of the impact. The speakers highlight that the recovery is expected to be slow and uneven across Canada. They emphasize the importance of government stimulus programs to encourage consumption and boost consumer confidence. They propose measures such as a national scrappage program to incentivize vehicle purchases and a GST/HST short-term holiday to stimulate the construction industry. They also suggest the introduction of a secure credit facility to increase lending capacity in the equipment and auto sectors. The speakers acknowledge that the recovery will be influenced by factors such as the development of a vaccine and the possibility of a second wave of infections. They anticipate that the recovery may take several years and emphasize the need for government intervention to accelerate the process.

Keywords

COVID-19

Canadian economy

recovery prospects

government support

stimulus programs

consumer confidence

economic impact