Bank of Canada warning more cuts coming in the energy patch
The Bank of Canada is warning that deeper cuts will be made in the energy sector unless oil prices recover substantially from here. The Bank highlights diverging economies as Alberta, Saskatchewan and NFLD continue to suffer while the rest of Canada is expected to do better. Labour pools also appear to be moving from highly-productivity sectors (like oil and gas) into less productive service sectors.
Governor Poloz congratulated PM Trudeau for potentially rescuing the Canadian economy from a bleak future, raising GDP expectations substantially to 1.7% in 2016, 2.3% in 2017 and 2.0% in 2018.