There is a feeling in policy circles in Ottawa – a naïve one but one with some legs nonetheless – that you can kill the oil industry in this country and it will be a good thing. In fact, those who are opposed to utilizing one of this country’s great assets seem to have convinced themselves that it actually will grow the economy.
Well, the numbers are in and that theory is wrong.
Canada’s economic growth slowed to one-tenth of one percentage point in the last quarter of 2018. That translates into half a per cent growth on an annualized basis, one of the most anemic in the industrial world and teetering on recession. Clearly, feds don’t have a very good handle on what they are doing. And what’s causing this is quite clear.
StatsCan points to national income falling as a result of declining crude oil and bitumen exports.
Household spending is down as interest rates rise, business investment is shrinking due to concerns about Ottawa’s anti-development policy and exports are declining. They’ve pretty much cut the pins from under every sector.