Canada’s economic growth lower than it looks – National
The “artificial” import figure alone added over a full percentage point to Canada’s overall growth figure, according to CIBC economist Nick Exarhos.
The Canadian economy grew by a whopping 2.6 per cent during the last three months of 2016 — or did it?
Other bank analysts sounded more positive notes, highlighting that disposable incomes and the personal saving rate posted solid growth.
READ MORE: Canadian economy grows 2.6 per cent, beats expectations in the last stretch of 2016The fourth-quarter growth figure beat economist’s expectations by 0.6 of a percentage point — a large amount, when you’re looking at GDP numbers.
Non-residential business investment, on the other hand, considered a more sustainable source of long-term growth, plummeted 17.4 per cent.
Canada’s economic growth lower than it looks .
“But if you take out the immigration factor, we hardly have any rise in the income poverty rate at all.”
“Since 2005, the high point in recent unemployment, we’ve seen a practical stability in the poverty rate,” Schröder told DW.
If everyone earned twice as much, then the poverty rate would be equally high.”
In other words, the poverty rate is artificially inflated.
Economic institutes like IW also criticize the fact that certain social groups, such as students, are often included in the standard definition of poverty even though their living standards are relatively high.
ANC aims to tweak economic policy to speed up growth
The ANC wants a “recalibration” of macroeconomic policy to promote reforms required for growth, according to its draft discussion documents.
A radical economic transformation, according to the documents, is about “fundamentally changing the structure of the South African economy”.
President Jacob Zuma and his supporters have also mounted a renewed push for “radical economic transformation”.
But the ANC documents are cautious about how economic redress should be handled, in what can read as a sign that the issue will be contentious at its policy conference in June.
The party is under pressure to deal with a limping economy, characterised by low growth and high unemployment.