Big job loss expected in Canada-Budget Watchdog
Canada, 3rd November: Canadian economy is expected to slowdown leading to higher rate of unemployment in the coming few quarters.
This has been revealed by Canada’s parliamentary budget office Kevin Page.
Loss of 100,000 Canadian jobs expected—The coming year could see a job loss of as much as 100,000 Canadian jobs due to global economic slowdown, Page asserted while commenting before the finance committee of the House of Commons.
He released a semi-annual report predicting higher unemployment rate in the nation next year.
Rate of unemployment is expected to move to eight percent by yearend while the GDP of the nation will experience a growth of just 1.5 percent and 2.1 percent in 2012 and 2013 respectively. Currently, jobless rate of Canada is 7.1 percent.
This would be due to global slowdown, the budget watchdog further claims.
Canada in good shape–Nonetheless, Page affirmed that Canada not only had a healthy plan but was also in good shape in terms of balancing the budget if not by first then by second deadline.
Page had forecasted a GDP growth rate of 2.3 percent in 2013 during his update unveiled in May this year almost similar to the forecast of 2.2 percent growth made by Canada Finance Minister Jim Flaherty.
The GDP growth rate will stay around 2.8 percent in the year 2014 and thereafter. This will lead to lower tax revenue thus putting to risk pledge of Ottawa to balance its budget by 2014.
Such financial turmoil would upset the federal deadline of 2014-15 to keep the budget in balance, the report future asserts. A shortfall of $7.3 billion is predicted in the year 2016-17. And until Q3 of 2013, key interest rate is going to be kept steady at Bank of Canada, Page states.
The nation does not have any fiscal structure either at territorial/provincial or at federal level needed for bringing stability in the debt-to-GDP ratio in the long term.
Among the factors named by the report for this imbalance in the economy include Euro zone debt crisis, reduced commodity prices and lower rate of growth in the US economy.