Ottawa’s animal spirits should be hopping.
Finance Minister Bill Morneau’s new budget assumes economic growth of 1.9 per cent in 2017, a less than spectacular number, but not terrible either. Higher oil prices, steady demand for Canadian automobile parts, and a rush of international tourists have combined to make a memory of the lousy economy Justin Trudeau inherited in 2015. Finally, there is a hint of the Prime Minister’s “sunny ways” in the math.
But only a hint. This is Donald Trump’s world now, and it remains unclear whether he will make it a wealthier place with big tax cuts, or wreck it with border taxes. The diviners of our economic future are split on the subject, which is forcing Morneau to proceed more cautiously than he might otherwise.
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