According to the statistics released by Statistics Canada, the Canadian economic growth slowed to 1.3% in the third quarter of BWC. The Bureau said that in the second quarter, the revised annual growth rate was 3.5%. This means that in the third quarter of this year, Canada's economy dropped 2.2%, or about 63%. Coincidentally, the Canadian economy has seen more losses and new progress has been made.
Financial website Zerohedge12 reported 6 days ago that a "bad" employment report has recently appeared in Canada and has hit the worst level since the financial crisis. In November, employment in Canada dropped by 71200, the biggest drop since the financial crisis. Among them, full-time employees decreased by 38 thousand and 400, and the private sector decreased by 5.0.2 million. The unemployment rate has also risen sharply, rising by four marks, the largest monthly growth since the recession, reaching 5.9%.
At the same time, the working hours of Canadian enterprises dropped by 0.3%, still a disappointing area - their current year-on-year growth is only 0.25%, which is much lower than that of 1.6%. According to the analysis, the Canadian Central Bank's interest rate cut also increased as Canada's economic downside risks increased, and Canadian dollar fell by 0.7% to 1.3259 in recent days, the biggest decline since October.
To add insult to injury, the risk of Canada's debt crisis continues to increase. Take Canada's household debt as an example. At present, Canada's household debt has now reached about 179% of its GDP, and Canadians will have a debt of $1.79 per $1 in disposable income, which is the highest in developed countries.
Moreover, according to a survey conducted by Financial Services Company Manulife in a survey of more than 2000 Canadian families with an annual income of $40000, 40% of the respondents (nearly half) believe that they will never be able to evade their debts. According to data from Equifax, the Canadian average debt per person is 71979 Canadian dollars, much higher than the 57000 Canadian dollar 5 years ago. Riaz Ahmed, chief financial officer of Toronto's Dao Ming bank, once said that bankruptcy is part of Canada's economic problems.
It should be said that the collapse of the economy and the collapse of the index have added to Canada's debt laden economy. This is evident from the surge in Canada's bankruptcy. Canadian Broadcasting Company recently quoted Canadian bankruptcy and restructuring Professionals Association (CAIRP) reported that the number of Canadian bankruptcies has soared. In the 12 months ended September 2019, 133923 Canadian consumers went bankrupt, up 8.5% from 123391 in the same period last year. In conjunction with this, the number of bankruptcies in Canadian enterprises is also increasing. In the 12 months ended September 2019, 3719 enterprises went bankrupt, an increase of 4.1% from 3571 in the same period last year. This has also become the footnote for the Canadian employment index and the economic growth index.
David Lewis, a member of the Canadian bankruptcy and restructuring Professionals Association, said Canada's economy is still in trouble. And he said a few weeks ago that the Canadian economy was in bankruptcy because of the withdrawal of global investors from the Canadian property market ahead of time.
We know that because of its sparsely populated territory, Canada is a market that relies heavily on overseas capital to invest in the property market and other Canadian dollar assets and develops the economy. Therefore, once the main buyers of the world no longer favour the assets of the Canadian property market, the Canadian economy will be caught off guard. At present, such a scene is happening.
For example, the big Vancouver real estate Committee warned several weeks ago that the number of houses available for sale in Canada increased sharply (40.7% a year), as foreign buyers, including Chinese investors, were absent from the market ahead of time. Take Canada's iconic city Toronto as an example, as early as 2018, the sale of high-end independent properties in the region had a sharp downward trend, and Toronto has dropped from first to 137th in the global housing rankings.
A study by the Rotman School of management at University of Toronto shows that the decrease in foreign investment, including Chinese buyers, has caused Canada's economy to lose nearly $10 billion a year. According to the Albert University report, Chinese investment in Canada dropped from 8 billion 400 million Canadian dollars in 2017 to 4 billion 400 million Canadian dollars at the end of 2018.
British economist James Pomeroy has predicted that Canada's household debt will reach 252% of GDP by 2045. In the face of the debt pressure of constantly exploding watches, if the main buyers of the world continue to divest, it is not a good news for the Canadian economy.
The Wall Street Journal reported a few weeks ago that Chinese buyers will continue to withdraw from the major global markets such as Canada and Australia. Analysts believe that this may be highly dependent on foreign investors in Canada's economic disaster. Fraser, a public policy think-tank in Canada, believes that in the next few years, Canada's economy will be in recession or inevitable. (end)