Ivey Professors Talk 2017 Canadian Economy

In the last month, two Ivey Business School professors have been interviewed to talk about the state of the Canadian economy in 2017. In both cases, they shared their concerns and their ideas for the future.

Yahoo Finance Canada asked Isaac Holloway, Ivey Economist and Assistant Professor, a simple question, “What’s the one economic policy that you would like to see Canada implement or change in 2017 and why?” His answer delved into the state of the current Canadian economy, which is experiencing its 150th year, and how he would like to see the Prime Minister guide the economy throughout 2017.

First, Holloway spoke about the uncertain state of North American trade and the slowed growth of China’s economy. Due to those two issues, he recommends that Canada focuses on renewing its trade agreement with India. “Talks for a Canada-India FTA have sputtered since 2010, mostly due to unwillingness on India’s part to unwind trade barriers to the degree Canada has negotiated with other partners,” he said. “While other countries fare worse, India’s massive size means the ‘missing trade’ in dollar terms (about one billion USD) is the sixth largest among the 170 trade partners, behind only large European countries—with which Canada has recently signed a comprehensive trade deal—and Russia. With the European deal in the books, let 2017 be the year of Canada and India.”

As for Mike Moffatt, another Ivey Professor, he told CBC News that his biggest concern for Canada’s economy in 2017 is the NAFTA trade deal. If Trump decides to end the deal, as he promised, it will hit Canada’s auto industry hard, especially considering that auto parts for one vehicle cross borders with Canada, Mexico and the U.S. approximately seven times before the car is built.

Another concern for Moffat was hydro. “The biggest policy challenge we face is electricity prices,” he told CBC News. At the federal level, he wants to see the Canadian government come up with plans to boost manufacturing and automotive sectors.

regions: Toronto

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