Welcome to our Weekly Digest – stay in the know with recent news updates relevant to business and the economy.

Getting rid of trade barriers within the country could increase productivity and add $200 billion to the economy each year.

A new report by the Canadian Federation of Independent Business (CFIB) suggests that removing interprovincial trade barriers could significantly boost Canada’s economy, potentially adding as much as $200 billion each year. This change would enhance productivity and provide widespread benefits, translating to about $5,100 per person annually, reflecting improved economic conditions and greater financial stability for Canadians.

The CFIB’s findings highlight the importance of addressing these trade barriers to foster a more integrated and efficient market. By doing so, Canada could achieve substantial productivity and economic growth, benefiting both businesses and individuals across the country.

A Bank of Canada rate cut seems more likely as retail sales drop.

In May, Canadians continued to cut back on discretionary spending, leading to a decline in retail sales, a trend that likely persisted into June according to flash estimates. This persistent slump in consumer spending signals potential economic slowdown and poses a concern for the overall economic health of the country.

The weak retail sales figures highlight the need for the Bank of Canada to consider lowering interest rates to stimulate spending and support the economy during this period of reduced consumer confidence. Policymakers may find it increasingly difficult to ignore these indicators as they assess the economic landscape.

A grocery code could encourage investment and keep prices stable.

A grocery code of conduct could help stabilize food prices and attract more investment to the Canadian food industry, according to Simon Laroche, president of Kraft Heinz Canada. Laroche believes that such a code would create a better trade environment for both suppliers and retailers, fostering fairer practices and making the industry more appealing to investors.

In an interview with The Canadian Press, Laroche emphasized the benefits for consumers, noting that a more stable pricing environment ultimately benefits those buying the products. He stated that the implementation of a grocery code of conduct would be a win for everyone involved, including suppliers, retailers, and consumers, who would all gain from a more regulated and fair marketplace.

Is a recession still a possibility in Canada?

Many Canadian consumers, feeling the pressure of high interest rates, may believe the economy is on the brink of a recession. This sentiment is driven by financial strain and uncertainty, causing widespread concern.

However, the expert outlook is mixed, with analysts offering varying perspectives on the likelihood of a recession. While some remain cautiously optimistic, suggesting that a full-blown recession may not be imminent, the consensus acknowledges the challenges posed by high interest rates without definitively predicting a recession. This mixed view reflects the complexity of the current economic landscape.

Important upcoming dates

• 31st July – Payment for GST/HST collected between April–June 2024 is due if you file your sales taxes on a quarterly basis.
• 5th August – Civic Holiday (AB, BC, SK, ON, NB, NU)
• 15th August – July payroll remittance due

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