February 6, 2023

The Queens County Citizen

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“Our economy will slow,” warned Finance Minister Chrystia Freeland

"Our economy will slow," warned Finance Minister Chrystia Freeland

The Bank of Canada is putting the brakes on the economy, we’re already seeing a slowdown in economic activity and that will continue, that’s the point. We must know the challenges before us and we must be ready for them.

In fact, from March 2022, The Bank of Canada continues to raise its key rate. The goal: to reduce inflation, which in 2022 reached peaks not seen in nearly 40 years.

By raising its key interest rate, the Bank of Canada encourages banks to raise their interest rates and thus discourages Canadians from spending heavily. Hence, demand must decrease, which sooner or later has the effect of lowering prices.

But until then, Many will see their mortgage payments increaseMrs. Freeland explained. Business is no longer so good since deconfinement. And the unemployment rate is no longer at historic rates.

This is what will happen in Canada. This is what happens in the United States. The same is going to happen in economies large and small around the world. »

A quote from Chrystia Freeland, Minister of Finance and Deputy Prime Minister of Canada

Canadians can already see prices going up everywhere. For example at the grocery store where In the field of construction.

A difficult but temporary period, guarantees Freeland

And the minister warns that this situation, while temporary, will not be resolved anytime soon. We have already seen inflation coming down 8.1 percent in June at 7.6% in July In Canada. however, Even if inflation moderates in the next few months, the situation will remain difficult. Difficult for our friends. For our families. For our neighbors. And for our communities.

Despite it all, Canada’s deputy prime minister remains confident. This condition is temporary and, after all, Canada’s financial fundamentals are really strong.

We have the lowest deficit of the G7 countries this year. International Monetary Fund [FMI] Our economic growth is expected to be the second fastest among all G7 countries this year.

Real gross domestic product (GDP) also suffered A slight increase of 0.1% in Canada in JulySome economists instead expected the country’s GDP to fall 0.1% in July, according to data published Thursday by Statistics Canada.

I do not pretend that this is not difficult, but Canada has the economic, social and political resources to meet this challenge. I hope Canada succeeds in this difficult time. »

A quote from Chrystia Freeland, Minister of Finance and Deputy Prime Minister of Canada

And Chrystia Freeland’s optimism doesn’t stop there. She predicts a great opportunity for Canada after this difficult period.

A huge opportunity is coming, once in a generation and our country has every chance to take advantage of it. Canada, she said, is well positioned to exploit critical minerals and green energy Democracies around the world want to buy.

In the meantime, however, Minister Freeland advises Canadians to stay informed and prepare for the tough financial months ahead.

BeforeWith information from Madeleine Blais-Morin

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