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

Canada’s retail sales increased by 0.7% in April after a slow first quarter.

Canadian consumer spending saw a sharp rebound last month, with preliminary data from Statistics Canada showing a 0.7 percent increase in retail receipts in April. This rise, the fastest since September, marks a significant improvement following weaker-than-expected sales in the first quarter, indicating a potential turnaround for the retail sector and suggesting that consumers are gaining confidence in the economic outlook.

Statistics Canada’s advance estimate, released on Friday, implies that this uptick in spending is a positive sign for the overall economy. As retail sales increase, businesses may experience improved revenues, potentially leading to expanded operations and job creation, contributing to a more robust economic recovery in the coming months.

How the expansion of the Trans-Pacific Partnership affects B.C. businesses

With the U.K. set to join the trade bloc, an expert emphasizes that the importance of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) remains severely underappreciated in Canada. Despite the growing significance of this trade agreement, many Canadians and businesses are unaware of the potential benefits, such as access to diverse markets and reduced trade barriers, that the CPTPP offers.

Greater engagement with the CPTPP could lead to significant economic gains for Canada by enhancing global competitiveness, especially in sectors like agriculture, manufacturing, and technology. As the CPTPP continues to expand, increased awareness and strategic involvement could help Canada capitalize on these opportunities, driving growth and innovation in the national economy.

Canada needs to adopt Gen AI faster to fix its productivity crisis.

The Canadian Chamber of Commerce’s Business Data Lab (BDL) has released a report highlighting the slow adoption of Generative Artificial Intelligence (Gen AI) among Canadian businesses, despite its critical importance for boosting Canada’s economic growth. The report identifies several barriers preventing widespread adoption, including high costs, lack of expertise, and insufficient infrastructure, making it challenging for businesses to integrate this advanced technology.

Additionally, the report highlights a significant lack of trust in Gen AI among Canadian businesses, with concerns about data security, ethical implications, and the reliability of AI-driven solutions contributing to hesitancy. The BDL emphasizes that overcoming these barriers and building trust in Gen AI is crucial for enhancing productivity and driving economic growth in Canada, as addressing these issues is essential for tapping into the full potential of Gen AI and improving the country’s global competitiveness.

Government red tape is hurting Canada’s economy.

Recent headlines reveal that Canada’s economic conditions are declining, eroding the prosperity and living standards of Canadians. This trend is evident in sectors like retail sales and various businesses facing numerous challenges, partly due to a complex and inefficient regulatory environment.

Canada’s regulatory load is substantial and growing, restricting business activity and imposing significant costs on firms. These burdens make domestic expansion more daunting and costly compared to international trade. Addressing these regulatory issues is crucial for enhancing economic productivity and growth, creating a more conducive environment for business development and overall economic prosperity.

The Canadian Chamber’s new council addresses the strain on Canada’s supply chains.

The Canadian Chamber of Commerce has launched its newest council to address a long-term vulnerability in the Canadian economy by enhancing the resilience and efficiency of supply chains. The newly formed Supply Chains Council is a collaborative national forum that brings together 16 organizations from various sectors, industries, and populations, ensuring diverse perspectives and expertise in tackling these challenges.

These organizations will work together to identify and mitigate risks to Canada’s supply chains, addressing disruptions, inefficiencies, and vulnerabilities exacerbated by recent global events. By fostering collaboration and sharing best practices, the council aims to protect and strengthen supply chains, thereby supporting businesses and consumers and contributing to the stability and growth of the economy.

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