Welcome to our Weekly Digest – stay in the know with some recent news updates relevant to business and the economy.
The Canadian economy grew in the second quarter, mainly due to increased government spending and higher wages
The Canadian economy grew at an annualized rate of 2.1 per cent in the second quarter of 2024, according to Statistics Canada, signaling a positive shift in overall economic activity. However, despite this growth, GDP per capita declined for the fifth consecutive quarter, suggesting that the benefits of economic expansion are not equally shared, with individual economic output continuing to decrease.
This ongoing drop in GDP per capita raises concerns about the sustainability of the current growth, as factors like population growth outpacing economic gains or uneven wealth distribution may be contributing to the trend. The report from Statistics Canada highlights the complex reality where economic growth does not necessarily lead to improved living standards for all Canadians.
The union is taking the government to court after it stopped a railway workers’ strike
The union representing thousands of railroad workers has appealed the government’s actions that ended last week’s rail shutdown, which had halted freight and commuter traffic nationwide. The shutdown was initiated by the union to demand better working conditions and fairer contract terms, but the government intervened, citing the need to maintain essential services and minimize economic disruption.
In response to the government’s intervention, the union is now challenging the legality of those actions in court. This appeal represents the union’s continued effort to seek what it considers fair treatment for its members, as the struggle between the workers and their employers enters a new phase.
NGen is launching a $200 million challenge to improve homebuilding in Canada
NGen is investing $200 million in its Advanced Manufacturing Homebuilding Challenge to revolutionize Canada’s homebuilding industry. This initiative aims to modernize the sector by integrating advanced technologies, improving efficiency, and addressing existing challenges in the construction process.
By fostering collaboration across the construction, technology, and manufacturing sectors, NGen hopes to drive innovation and position Canada as a leader in modern homebuilding techniques. This investment reflects a broader commitment to enhancing the country’s manufacturing capabilities and setting new industry standards.
As interest rates go down, could housing become more affordable?
Experts predict that the Bank of Canada will continue lowering interest rates in the coming months, potentially leading to reduced mortgage rates and cheaper borrowing for homebuyers. This could make home loans more affordable and encourage more people to enter the housing market.
However, deciding to buy or sell a home involves more than just considering mortgage rates. Factors like housing prices, market demand, and personal financial situations are crucial in determining whether now is the right time to make a move in the real estate market.
B.C. limits rent increases to 3% for 2025, in line with inflation
The British Columbia government has announced a new cap on rent increases for 2025, setting the maximum allowable increase at three per cent, down from the 3.5 per cent cap in 2024. This move aims to address affordability concerns and provide some relief to renters facing high living costs.
While the reduced cap may help tenants manage housing expenses, it also presents challenges for landlords who need to balance their operating costs with the new limits. The decision reflects the ongoing complexities of managing housing affordability in a competitive market.
