Canada’s economy is recovering, albeit slowly, amid the ongoing effects of the COVID-19 pandemic.
Ted Mallett, director of economic forecasting for the Conference Board of Canada, points to several positive signs and conditions for the recovery.
For one thing, the economy has grown by around five percent this year, but there is some catching up to do, and that is expected to last until the end of 2022.
Consumers have cash – Mallett says household savings are five times higher than before COVID – but the unavailability of services, travel, or even consumer goods will slow recovery.
Government income support programs are expiring and a return to work should encourage more average economic buying trends and encourage consumers to spend that extra money, he says, but global goods logistics are far from sorted.
World trade is like a well-staged ballet, he says, with a couple of wrenches thrown into it. Clearing this mess will take time.
Additionally, scarcity and uncertainty have increased the cost of some goods, which may put some consumer spending off, but Mallett sees prices settling in the next year to 18 months.