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CANADA AND USA GDP
ANALYSIS – 1Q17
BY: PAUL YOUNG, CPA, CGA
DATE: JUNE 1, 2017
PAUL YOUNG - BIO
• CPA, CGA
• Financial Solutions
• SME – Risk Management
• SME – Close, Consolidate and Reporting
• SME – Public Policy
• SME – Financial Solutions
• SME – Supply Chain Management
Contact information:
Paul_Young_CGA@Hotmail.com
OVERVIEW
• This presentation discusses the GDP for both Canada and USA
including issues at hand that could impact growth for the
remaining quarters in 2017
GDP FORECAST FOR 2017
Source – Scotiabank Economics
CANADA AND USA GDP ANALYSIS
• Stats Canada and http://www.multpl.com/us-gdp-inflation-
USA AND CANADA GDP COMPARISON
Source – Stats Canada and BEA
CANADA’S ECONOMY FASTEST-GROWING IN G7,
BUT INVESTORS AREN’T WOWED
Source - https://www.therecord.com/news-story/7346153-canada-s-
economy-fastest-growing-in-g7-but-investors-aren-t-wowed/
Canada's economy is flexing its muscles. Investors are not impressed.
The country's economy expanded at an annualized 3.7 per cent pace in the first quarter,
Statistics Canada reported Wednesday, easily tops in the Group of Seven.
Meanwhile, in a year when stocks are rising everywhere, Canada's benchmark index is the
second-worst performer in the developed world after Israel, according to Bloomberg data. It's
a similar story in currency and bond markets.
The performance underscores how, even with the improving economic performance, caution
prevails. Investors remain concerned about geopolitical risks, the outlook for oil prices and a
housing market that some analysts say is on the verge of a correction.
"It is a tad curious to say the least that the Canadian economy arguably has been one of the
bigger pleasant surprises in 2017 and meanwhile the equity market has done a belly flop,"
said Doug Porter, chief economist at Bank of Montreal, who highlighted the disconnect
between Canadian growth and market performance in a May 26 note.
ISSUES AT HAND FOR THE CANADIAN
ECONOMY
• Oil Price and Production have rebounded (2016 seen the Ft McMurray fire
and lower oil prices
• Service sector is fueled by the overprice housing market. Housing prices are
still growing at 8-10 times higher than inflation
• Canada and Mexico are re-negotiating NAFTA. Canada has already
experience duty on Lumber
• Retail spending reflects capital purchases. Canada household debt is
becoming a big issue.
• USA economy is still in wait and see approach in terms of Trump’s policies

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Canada has the fastest growing economy in the G7

  • 1. CANADA AND USA GDP ANALYSIS – 1Q17 BY: PAUL YOUNG, CPA, CGA DATE: JUNE 1, 2017
  • 2. PAUL YOUNG - BIO • CPA, CGA • Financial Solutions • SME – Risk Management • SME – Close, Consolidate and Reporting • SME – Public Policy • SME – Financial Solutions • SME – Supply Chain Management Contact information: Paul_Young_CGA@Hotmail.com
  • 3. OVERVIEW • This presentation discusses the GDP for both Canada and USA including issues at hand that could impact growth for the remaining quarters in 2017
  • 4. GDP FORECAST FOR 2017 Source – Scotiabank Economics
  • 5. CANADA AND USA GDP ANALYSIS • Stats Canada and http://www.multpl.com/us-gdp-inflation-
  • 6. USA AND CANADA GDP COMPARISON Source – Stats Canada and BEA
  • 7. CANADA’S ECONOMY FASTEST-GROWING IN G7, BUT INVESTORS AREN’T WOWED Source - https://www.therecord.com/news-story/7346153-canada-s- economy-fastest-growing-in-g7-but-investors-aren-t-wowed/ Canada's economy is flexing its muscles. Investors are not impressed. The country's economy expanded at an annualized 3.7 per cent pace in the first quarter, Statistics Canada reported Wednesday, easily tops in the Group of Seven. Meanwhile, in a year when stocks are rising everywhere, Canada's benchmark index is the second-worst performer in the developed world after Israel, according to Bloomberg data. It's a similar story in currency and bond markets. The performance underscores how, even with the improving economic performance, caution prevails. Investors remain concerned about geopolitical risks, the outlook for oil prices and a housing market that some analysts say is on the verge of a correction. "It is a tad curious to say the least that the Canadian economy arguably has been one of the bigger pleasant surprises in 2017 and meanwhile the equity market has done a belly flop," said Doug Porter, chief economist at Bank of Montreal, who highlighted the disconnect between Canadian growth and market performance in a May 26 note.
  • 8. ISSUES AT HAND FOR THE CANADIAN ECONOMY • Oil Price and Production have rebounded (2016 seen the Ft McMurray fire and lower oil prices • Service sector is fueled by the overprice housing market. Housing prices are still growing at 8-10 times higher than inflation • Canada and Mexico are re-negotiating NAFTA. Canada has already experience duty on Lumber • Retail spending reflects capital purchases. Canada household debt is becoming a big issue. • USA economy is still in wait and see approach in terms of Trump’s policies