Close X
Sunday, March 2, 2025
ADVT 
National

OECD lauds Ottawa's Approach To Boosting Economy; Raises Concerns Over Housing

Darpan News Desk The Canadian Press, 13 Jun, 2016 11:40 AM
    MONTREAL — Canada got a pat on the back from the OECD for trying to boost economic growth through infrastructure spending, but the international economic think-tank said more action is needed to address overheating in major pockets of the housing market.
     
    "Canada actually is a good example of a country taking the right measures to break out of the low-growth trap," Angel Gurria, secretary general of the Organization for Economic Co-operation and Development, said Monday during a news conference with federal Finance Minister Bill Morneau.
     
    Higher public investment in Canada means that monetary policy isn't being left to do all the "heavy lifting" to support the economy, Gurria said.
     
    While many countries are curtailing spending, Gurria said Canada is pursuing a different approach to improving sluggish economic growth since the 2008 world financial crisis.
     
    Initial signs are promising, with unemployment falling and growth reviving despite wildfires in the Fort McMurray area that hammered the oilpatch and Alberta's economy, he added.
     
    Morneau said the plan to make $50 billion in strategic investments over six years is forecast to grow the country's economic output by 0.5 per cent this year and one per cent in 2017, creating 100,000 jobs.
     
    "There's no doubt it's a challenging time for the global economy and we recognize that external developments continue to impact the outlook for Canada," he said.
     
    He pointed to the volatility of oil prices, the Chinese economy, the strong U.S. dollar and the state of the Canadian housing market.
     
    The OECD said in a report that the federal government has taken action to cool the housing market, such as boosting down payments for insured mortgages beyond $500,000 but recommended further measures targeted to regional markets.
     
    The report also noted the sharp increase in housing prices in major centres such as Toronto and Vancouver along with a rise in already high household debt.
     
    It said those factors are squeezing middle class families.
     
    Morneau said it is a complex market with different situations in cities.
     
    "In order to come up with the right approach to ensuring that Canadians can continue to buy homes, we are looking very closely at all the dynamics in that market," he told reporters.
     
    Among the areas being examined are demographic changes, labour markets, and the impact of foreign investment in housing.
     
    The OECD's report also said Canada's non-resource industries have offset some of the economic weakness created by slumping commodity prices.
     
    It said output has dropped sharply in Canadian industries affected by commodity prices but had risen in the rest of the economy.
     
    The Paris-based organization said the shift towards non-resource sectors has led to new job creation to offset some of the losses in the energy sector.

    MORE National ARTICLES

    RCMP Officers And Civilians Rescue Distressed Driver In Surrey

    RCMP Officers And Civilians Rescue Distressed Driver In Surrey
    A medical incident this past Monday evening near the Surrey RCMP’s main detachment highlights the importance of first aid training and how the quick actions taken by first responders and civilians likely saved a life.

    RCMP Officers And Civilians Rescue Distressed Driver In Surrey

    Drunk Canadian Woman Charged In Louisiana After Wild Arrest Captured On Video

    Drunk Canadian Woman Charged In Louisiana After Wild Arrest Captured On Video
    Veronique Bourgault, of Repentigny, Que., was arrested Friday evening following the fracas at a busy Tiger Stadium.

    Drunk Canadian Woman Charged In Louisiana After Wild Arrest Captured On Video

    Burnaby RCMP Seek Driver After Vehicle Rear-Ends RCMP Cruiser, Injures Mountie

    Burnaby RCMP Seek Driver After Vehicle Rear-Ends RCMP Cruiser, Injures Mountie
    The officer was in his unmarked cruiser at the side of Highway 1 in Burnaby, completing paperwork from an unrelated traffic stop

    Burnaby RCMP Seek Driver After Vehicle Rear-Ends RCMP Cruiser, Injures Mountie

    High Demand, Low Inventory Equals Record Housing Sales In Greater Vancouver

    High Demand, Low Inventory Equals Record Housing Sales In Greater Vancouver
    The board says homes are selling at an unprecedented rate in communities across the region stretching from Whistler to South Delta.

    High Demand, Low Inventory Equals Record Housing Sales In Greater Vancouver

    Funding Shortfall Means Fewer Language Classes For Syrian Refugees

    In Toronto, no classes will be offered this summer by at least one major organization, while in Vancouver, more than 200 spots have been cut.

    Funding Shortfall Means Fewer Language Classes For Syrian Refugees

    Scenes Of Destruction As Second Wave Of Residents Return To Fort McMurray

    Scenes Of Destruction As Second Wave Of Residents Return To Fort McMurray
    Nothing seems amiss looking at the front of Adam Chouinard's Fort McMurray house, aside for the yellow "restricted use" sign taped to the door.

    Scenes Of Destruction As Second Wave Of Residents Return To Fort McMurray