This presentation presents information that Canada's economy likely will not grow at 3% for 2017. There are too many issues impacting key areas of the economy that may influence drivers like business investment, consumer spending, trade and government spending.

1. WILL CANADA
EXCEED 3%+ GDP
GROWTH FOR
2017
By: Paul Young CPA, CGA
Date: April 15, 2017

2. WHAT DRIVES GDP GROWTH
▪ Consumer Spending
▪ Business Spending
▪ Government Spending

3. CANADA GDP – JANUARY 2017
▪ Source – Stats Canada
Factors that will influence GDP
• Government budgets are strapped for
Cash
• Impact of Carbon Taxation and/or
hydro rates have not work through the
complete supply chain
• Inflation is over 2.3%
• Wages continue to be stagnated
• Business investment is weak
• Oil Prices are up, but struggling to get
above $55/Barrel
• Trump’s economic policies have yet to
be implemented
• Consumer spending main drive is large
purchases. Automotive sales have
pulled back in March 2017
• Weak global Demand

4. 2017-2018 – FEDERAL BUDGET
Chamber of Commerce/Calgary – April 4, 2017
We agree that Budget 2017 sets some foundation for a more competitive and innovative Canada. This is
done by encouraging superclusters (Silicon Valley is a great example of a supercluster), setting up a strategic
innovation fund, providing funds for venture capital, and investing in trade supportive industry (something
we've been advocating for for quite some time).
The Budget also provides $1.8 billion over six years to expand EI training programs, and tables significant
improvements for accessing global talent through the Global Skills Strategy. You can find more information on
the specific policies that may impact your business here.
We also applaud some of the positive steps taken to promote the agri-food sector, a crucial industry for
Alberta, representing our number two export.
We are also very happy to hear that our government will be addressing Canada's internal trade barriers. The
trade barriers between provinces cost our economy billions of dollars each year. Simply put, they're a hidden
constraint that hinders business growth. Progress on this front is a win for business.
Comment:
• Canada already has innovation centers through various Universities/Colleges
• It takes time to take ideas from incubation to market
• Funds are available, but not to every company. Government role is not to pick winners and losers

5. NATURAL RESOURCES
▪ 2017-2018 Budget
▪ Little support for Natural Resources
▪ Red Tape and Regulations
▪ No reduction in Red Tape/regulations
▪ Clean Tech is $50B market
▪ Needs access to raw materials (Lithium, Vanadium and Rare Metals)
▪ More funds for R&D which needs to available to more industries

6. HOUSEHOLD BUDGETS
▪ Government Carbon Tax
▪ Carbon taxation will add 5-8% to goods and services sold in Canada
▪ Australia pull the carbon tax as it did little for environment but hurt the economy
▪ Government removed more tax credits
▪ Transit tax credit that saved a person $450/average year on their taxes

7. SUMMARY
▪ GDP 3.4% for 1Q17 like is not going to happen as there has been pulled
back in areas like manufacturing sales, consumer spending and Exports
▪ Wages are not keeping pace with inflation
▪ Carbon Taxation will impact consumer prices which means people will spend less
on consumer goods
▪ Many governments have austerity measures as part of their fiscal management
cycle
▪ Business investment is weak
▪ Ontario business are making investment elsewhere due to high hydro rates
▪ Employment/job creation has been in areas like supply chain management. The
goods producing sector continues to struggle to create new jobs