He emphasizes the key difference between the two nations
The Canadian economy is facing more challenges than many might realize – especially compared to its neighbour to the south, according to a leading economist.
David Rosenberg, founder and president of Rosenberg Research, says Canada’s economy is more fragile than perceived, citing reliance on population growth.
“You can mask an erosion in the economy through unprecedented immigration and population growth. But [regarding] real per capita income and output, the Canadian economy on that basis already is in a recession,” said Rosenberg in an interview with BNN Bloomberg.
Rosenberg emphasized a key difference between the Canadian and US economies, pointing out the impact of fiscal policies. He said the US economy is buoyed by “monumental fiscal stimulus,” particularly stemming from the CHIPS Act, which was enacted in 2022 to bolster semiconductor manufacturing and research.
The economist attributed much of the US’s economic growth in the previous year to this fiscal stimulus, with the country’s GDP expanding by 2.5% in 2023. Unlike the United States, Canada’s economy is smaller and more open, making it more susceptible to global events.
Rosenberg highlighted the Canadian economy is more impacted by international developments, describing Canada to be “three times more sensitive to the global economy than the US” He pointed to concerning economic trends such as "flattening" data from the European Union and deflationary pressures in China, which could reverberate through the Canadian economy.
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