Next government to face declining demand for manufacturing, energy: report

October 15, 2019 | Last updated on October 15, 2019
1 min read
Gas flaring. Torch against the sky.
© Leonid Ikan / 123RF Stock Photo

As federal parties dig in for the final week of campaigning before the Oct. 21 vote, a new report outlines the economic headwinds the next government will face.

The quarterly economic report from RSM Canada LLP said the country’s GDP performance is “deceptive,” with global geopolitical tensions and the U.S.-China trade war set to affect spending and growth.

Canada is also starting to feel the side effects of the global slowdown in manufacturing, and demand for Canadian energy resources is declining, the report said.

Canada’s economy surpassed expectations in the second quarter, growing at 3.7%. Growth was flat in July and is expected to be slower in the third and fourth quarters.

The International Monetary Fund projects Canadian economic growth of 1.5% this year and 1.8% in 2020.

RSM recommended boosting the economy by adjusting employment insurance, providing individual tax relief as well as business tax incentives, and increasing government spending through infrastructure projects.

Moving ahead with the Trans Mountain Pipeline project would boost short- and long-term productivity, the report said, creating jobs for large and small corporations.

Download the full report here.