To hear some domestic commentators tell it, Canada’s economy is dancing on the brink of disaster.
You’d be hard pressed to find any real evidence of that, however, at least in the country’s actual operating numbers.
For one thing, the country is still adding jobs, and lots of them. As “Spring Jobs Surprise” shows, the country’s March job gains were more than 7x what the consensus of economists had been forecasting.
That’s extraordinary, as a demonstration of both the resiliency of the Canadian economy and how out of touch pessimistic sentiment is with the reality on the ground.
Canada’s unemployment rate is now down to just 7.2%, from a prior 7.4%.
As “Great White Stability” shows, the country’s inflation rate has been well behaved for nearly two decades. And it shows no sign of being anything but stable going forward. Corporate borrowing rates remain extremely low and stable, with the yield on 10-year bonds at the lowest level in decades.
This means several things. First, corporations are still able to borrow at rates low enough to dramatically increase the success rate of investments in everything from infrastructure to marketing and distribution networks. This is fueling unprecedented growth of energy pipelines, processing centers and transport networks but also a range of complementary projects, including schools and roads.