This presentation looks at key areas that will drive GDP for both Canada and United States. Key fundamentals are what you have to watch when assessing GDP. GDP has many moving parts, but a few parts drive the bulk of GDP like consumer spending, business spending/investment and government spending.

1. ARE GDP FUNDAMENTALS
STRONG FOR CANADA AND
UNITED STATES – MAY 2017
PAUL YOUNG CPA, CGA
MAY 4, 2017

2. PAUL YOUNG - BIO
• CPA, CGA
• Financial Solutions
• SME – Business Process Changes
• SME – Risk Management
• SME – Close, Consolidate and Reporting
• SME – Public Policy
• SME – Financial Solutions
• SME – Supply Chain Management
• Academia – Advance Accounting, Public
Finance and Advanced Management Systems
Contact information:
Paul_Young_CGA@Hotmail.com

3. KEY AREAS OF GDP
• Goods Producing (Private Investment)
• Government
• Consumer Spending

4. GDP FORECAST – MAY 3, 2017 - SCOTIABANK

5. CANADA GDP / FEBRUARY 2017
• Stats – Canada
Issues
• Manufacturing facing cost pressure
and lower demand domestically and
internationally
• United States protectionism policies
• Softwood Lumber Tariff
• Government spending is under
pressure due to high government
debt and deficits
• Retail sales have been pulling back
• Consumers have less money to
spend
• Oil Production has rebounded, but
not employment and capital
investment
• Housing Market driving GDP growth
• Housing prices continues to rise
faster than GDP and Wage
Growth

6. USA GDP
New York Times – April 28, 2017
“Consumers aren’t spending
out of desire but out of
obligation,” she said. “And I
believe that since the
recession and the bursting of
the housing bubble, the
middle class wants to save.
They don’t want to get back
into the position they were
in after 2008.”
Stephanie Pomboy, founder of
MacroMavens – April 28, 2017

7. IS GDP AT RISK FOR 2017?
• Housing Market
• Overpriced
• Infrastructure moneys
• Government has been slow with money for infrastructure
• Clean Technology
• Investment is up, but clean tech companies have yet to turn a profit in Canada
• Hydro Rates
• Hydro rates continue to be an anchor for provinces like Ontario
• Carbon Taxation/Canada
• Ontario and Alberta implemented carbon taxation which has led to higher fuel costs. The higher fuel costs
have yet to flow through the supply chain in terms of higher consumer prices
• United States protectionism policies could impact trade
• higher consumer prices due to imposing of import taxes