Business
GDP growth at a standstill in Canada, oil and gas sector one major bright spot – Conference Board of Canada

Article submitted by the Conference Board of Canada
Muted Outlook for Canadian Economy
Consumer Spending Holding Strong Despite Confidence Being Weak
Despite the progress that has been made, inflation is still weighing down Canada’s economy according to new research from The Conference Board of Canada. In keeping with its previous forecast, real GDP growth will be at a virtual standstill for the rest 2023. For the year as a whole that means a 0.9 per cent gain, followed by only a modest 1.4 per cent improvement in 2024.
“Concerns about the U.S. financial system are unlikely to be mirrored in Canada given our country’s more concentrated banking system,” stated Ted Mallett, Director, Economic Forecasting at The Conference Board of Canada. “The indirect effects will be muted, and business investment was already expected to be weak in Canada so there is relatively little business lending to pull back.”
The global economy has slowed sharply over the past year as major central banks have increased interest rates, but despite the weak near-term growth anticipation, the chances of a severe global recession have receded. Inflation remains a threat, but two key developments provide reason for optimism. The first is the mild winter in Europe eased concerns of an energy crunch, with natural gas prices now lower than before the Russian invasion of Ukraine. The second is China’s removal of the zero-COVID policy, which saw their economy open at a much faster pace than anticipated.
The U.S. economy continues to defy expectations, with an expansion of 2.7 per cent in the final quarter of last year. Several factors should ensure that the coming slowdown in economic growth won’t be as severe as past slumps in economic activity. The major reason behind this view is the excess savings that households in America built up during the pandemic when the opportunity to spend was severely limited.
A slower U.S. economy will weigh on Canada’s trade results in the coming months, but the exports sector will still see a good showing in 2023, according to The Conference Board of Canada. Supply chain disturbances, which significantly restrained activity for many export sectors last year, have shown signs of easing over the past several months. A weak domestic economy, the depreciation of the loonie, and a steep decline in machinery and equipment investment will lead to muted activity for total real imports this year.
The oil and gas sector is a major bright spot in Canada thanks to strong corporate profits and ongoing projects in Western Canada and Newfoundland and Labrador.
Canada’s labour market has seen an impressive start to 2023, according to The Conference Board of Canada, which is being fuelled by an uptick in population growth. International migration to Canada has risen sharply in recent quarters, driven by record immigration targets and increased admissions of non-permanent residents, including temporary foreign workers.
Higher mortgage rates have slowed residential demand and unsurprisingly, the resale market has corrected with sales and prices decreasing. This downturn will frustrate some homeowners who bought at peak prices, while higher interest rates could severely impact some homeowners forced to renew mortgages at higher interest rates.
“While much of the COVID-19 support spending is now in the rear-view mirror, governments continue to have a heightened presence in the economy,” continued Mallett. “The pandemic brought about a new era of challenges to public finances, which were hardly looking rosy heading into the pandemic. The most notable question mark in today’s fiscal climate is how well governments can cope with new economic shocks.”
Alberta
Calgary taxpayers forced to pay for art project that telephones the Bow River

From the Canadian Taxpayers Federation
The Canadian Taxpayers Federation is calling on the City of Calgary to scrap the Calgary Arts Development Authority after it spent $65,000 on a telephone line to the Bow River.
“If someone wants to listen to a river, they can go sit next to one, but the City of Calgary should not force taxpayers to pay for this,” said Kris Sims, CTF Alberta Director. “If phoning a river floats your boat, you do you, but don’t force your neighbour to pay for your art choices.”
The City of Calgary spent $65,194 of taxpayers’ money for an art project dubbed “Reconnecting to the Bow” to set up a telephone line so people could call the Bow River and listen to the sound of water.
The project is running between September 2024 and December 2025, according to documents obtained by the CTF.
The art installation is a rerun of a previous version set up back in 2014.
Emails obtained by the CTF show the bureaucrats responsible for the newest version of the project wanted a new local 403 area code phone number instead of an 1-855 number to “give the authority back to the Bow,” because “the original number highlighted a proprietary and commercial relationship with the river.”
Further correspondence obtained by the CTF shows the city did not want its logo included in the displays, stating the “City of Calgary (does NOT want to have its logo on the artworks or advertisements).”
Taxpayers pay about $19 million per year for the Calgary Arts Development Authority. That’s equivalent to the total property tax bill for about 7,000 households.
Calgary bureaucrats also expressed concern the project “may not be received well, perceived as a waste of money or simply foolish.”
“That city hall employee was pointing out the obvious: This is a foolish waste of taxpayers’ money and this slush fund should be scrapped,” said Sims. “Artists should work with willing donors for their projects instead of mooching off city hall and forcing taxpayers to pay for it.”
Automotive
Supreme Court Delivers Blow To California EV Mandates

From the Daily Caller News Foundation
“The Supreme Court put to rest any question about whether fuel manufacturers have a right to challenge unlawful electric vehicle mandates”
The Supreme Court sided Friday with oil companies seeking to challenge California’s electric vehicle regulations.
In a 7-2 ruling, the court allowed energy producers to continue their lawsuit challenging the Environmental Protection Agency’s decision to approve California regulations that require manufacturing more electric vehicles.
“The government generally may not target a business or industry through stringent and allegedly unlawful regulation, and then evade the resulting lawsuits by claiming that the targets of its regulation should be locked out of court as unaffected bystanders,” Justice Brett Kavanaugh wrote in the majority opinion. “In light of this Court’s precedents and the evidence before the Court of Appeals, the fuel producers established Article III standing to challenge EPA’s approval of the California regulations.”
Kavanaugh noted that “EPA has repeatedly altered its legal position on whether the Clean Air Act authorizes California regulations targeting greenhouse-gas emissions from new motor vehicles” between Presidential administrations.
“This case involves California’s 2012 request for EPA approval of new California regulations,” he wrote. “As relevant here, those regulations generally require automakers (i) to limit average greenhouse-gas emissions across their fleets of new motor vehicles sold in the State and (ii) to manufacture a certain percentage of electric vehicles as part of their vehicle fleets.”
The D.C. Circuit Court of Appeals previously rejected the challenge, finding the producers lacked standing to sue.
“The Supreme Court put to rest any question about whether fuel manufacturers have a right to challenge unlawful electric vehicle mandates,” American Fuel & Petrochemical Manufacturers (AFPM) President and CEO Chet Thompson said in a statement.
“California’s EV mandates are unlawful and bad for our country,” he said. “Congress did not give California special authority to regulate greenhouse gases, mandate electric vehicles or ban new gas car sales—all of which the state has attempted to do through its intentional misreading of statute.”
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