Archive for the ‘economy’ Category
“Ontario teetering on recession” | G and M
One thing we feel passionately about at CommunityLend is providing tools and relevant news, and we will try not to be overwhelming. The need is becoming ever more apparent, with the example of RBC announcing this morning, the prospect of recession in Ontario.
reportonbusiness.com: Ontario teetering on brink of recession: RBC
Like the United States, Ontario’s economy is “on the brink of recession” in 2008, says Royal Bank of Canada in a report released Thursday morning. The drag on Ontario’s exports will mean that Canada’s biggest province will only eke out 0.8 per cent growth of its gross domestic product this year, the report says.
… …Canada will also continue with its rate cuts, RBC predicts. The report sees the central bank’s key rate falling to 2.75 per cent from 3.5 per cent right now, as policy makers move to mitigate pressure from the weak U.S. economy, tighter credit conditions in Canada, and a strong Canadian dollar.
In related news, the same newspaper reports shifts in how Canadians are investing this spring season.
Canadians investors stashed an estimated $2.55-billion into mutual funds in March, with most of the cash headed towards money market investments, preliminary figures released Wednesday indicate.
That’s nearly a 50-per-cent drop from the $5.2-billion that investors socked away in funds for the same month in 2007, according to the Investment Funds Institute of Canada.
“Investors continue to focus on money market funds, though we expect they will move this money into long-term funds in the coming months as the volatility subsides,” Pat Dunwoody, IFIC’s vice-president of member services and communications, said in a statement.
