Canadian Economic News, January 2022 Edition

This module provides a concise summary of selected Canadian economic events, as well as international and financial market developments by calendar month. It is intended to provide contextual information only to support users of the economic data published by Statistics Canada. In identifying major events or developments, Statistics Canada is not suggesting that these have a material impact on the published economic data in a particular reference month.

All information presented here is obtained from publicly available news and information sources, and does not reflect any protected information provided to Statistics Canada by survey respondents.

COVID-19 timeline

  • The Government of the Northwest Territories announced on January 6th it had extended the State of Emergency in the City of Yellowknife until January 19th. On January 19th, the Government extended the State of Emergency until February 2nd.
  • On January 11th, the Government announced it had extended the territory-wide Public Health Emergency until January 18th. On January 18th, the Government extended the Public Health Emergency until February 1st.
  • The Government of Nunavut announced on January 6th it had extended the territory's public health emergency until January 20th. On January 20th, the Government extended the public health emergency until February 3rd.
  • The Government of Nova Scotia announced on January 7th it was renewing the state of emergency, effective January 9th, to January 23rd. On January 21st, the Government extended the state of emergency until February 6th.

Selected COVID-19 responses

  • On December 30, 2021 the Government of Ontario announced it was updating public health measures and that effective December 31st it was restricting spectator capacity to 50% of the usual seating capacity or 1,000 people, whichever is less, in the indoor areas of the following settings:
    • Spectator areas of facilities used for sports and recreational fitness activities (e.g., sporting events);
    • Concert venues; and
    • Theatres.
  • The Government also said that students were set to return to schools on January 5th for school boards previously scheduled to return on January 3rd.
  • On January 3rd, the Government announced it was temporarily moving the province into Step Two of its Roadmap to Reopen with modifications and that effective January 5th until at least January 26th measures would include:
    • Reducing social gathering limits to five people indoors and 10 people outdoors;
    • Limiting capacity at organized public events to five people indoors;
    • Retail settings, including shopping malls, permitted at 50% capacity;
    • Personal care services permitted at 50% capacity and other restrictions;
    • Closing indoor meeting and event spaces;
    • Public libraries limited to 50% capacity;
    • Closing indoor dining at restaurants, bars, and other food or drink establishments;
    • Restricting the sale of alcohol after 10 p.m. and the consumption of alcohol on-premise in businesses or settings after 11 p.m.;
    • Closing indoor concert venues, theatres, cinemas;
    • Closing museums, galleries, zoos, historic sites, amusement parks and waterparks, rural exhibitions, and festivals; outdoor establishments permitted to open with spectator occupancy limited to 50% capacity;
    • Closing indoor sport and recreational fitness facilities including gyms; outdoor facilities are permitted to operate but with the number of spectators not to exceed 50% occupancy.
  • The Government also said that all publicly funded and private schools would move to remote learning starting January 5th until at least January 17th.
  • On January 7th, the Government announced it was providing targeted relief for businesses and people impacted by the current public health measures, including:
    • Introducing a grant for eligible businesses that are subject to closures under the modified Step Two of the Roadmap to Reopen; and
    • Providing additional electricity-rate relief for businesses, as well as workers and families spending more time at home.
  • On January 18th, the Government announced it was providing 21 days of electricity-rate relief to support families and workers as well as small businesses, effective immediately.
  • On January 20th, the Government announced details of steps to ease public health measures in a phased approach, and that effective January 31st it would begin the process of easing restrictions, including:
    • Increasing social gathering limits to 10 people indoors and 25 people outdoors;
    • Increasing or maintaining capacity limits at 50% in indoor public settings, including but not limited to:
      • Restaurants, bars and other food or drink establishments without dance facilities;
      • Retailers (including grocery stores and pharmacies);
      • Shopping malls;
      • Non-spectator areas of sports and recreational fitness facilities, including gyms;
      • Cinemas;
      • Meeting and event spaces;
      • Recreational amenities and amusement parks, including water parks;
      • Museums, galleries, aquariums, zoos and similar attractions; and
      • Casinos, bingo halls and other gaming establishments; and
    • Allowing spectator areas of facilities such as sporting events, concert venues and theatres to operate at 50% seated capacity or 500 people, whichever is less.
  • The Government also said that it would further lift measures on February 21st and again on March 14th.
  • On December 30th, the Government of Quebec announced additional measures, effective December 31st, including:
    • A curfew between 10 p.m. and 5 a.m.;
    • Private gatherings inside must be limited to occupants of the same residence;
    • Elementary and secondary schools, general adult education, and vocational training will be online until January 17th, in all regions of Quebec;
    • Outdoor events can accommodate up to a maximum of 250 people;
    • Restaurants are open for take-out only;
    • Retail, except for certain businesses such as convenience stores, gas stations and pharmacies, will be closed on Sundays; and
    • Indoor sports are suspended.
  • On January 13th, the Government announced that the curfew would end on January 17th and that businesses with an area of 1,500 square metres or more would have to impose a vaccine passport with exceptions for grocery stores and pharmacies. The Government also said that the measure requiring the closure of non-essential businesses on Sunday would end after January 16th.
  • On January 25th, the Government announced the easing of measures in two phases, and that effective January 31st:
    • Private gatherings are allowed up to a maximum of 4 people;
    • Restaurants can open to 50% capacity, must stop selling alcohol at 11 pm, and close at midnight;
    • Bars, taverns, and casinos will remain closed;
    • Indoor civil sports or recreational activities, including lessons, will be permitted for persons under the age of 18;
    • Special indoor activities and places, including the Biodôme, Planetarium, aquariums, botanical gardens, insectariums, and zoological gardens can open to 50% capacity.
  • The Government said that it would lift measures further on February 7th.
  • On December 30th, the Government of Prince Edward Island announced it was reopening the COVID-19 Emergency Payment for Workers Program and reinstating the Emergency Income Relief Program for the Self-Employed which provide financial support to residents impacted as a result of the COVID-19 public health measures announced on December 17, 2021. The Government said the eligibility period for the programs would expire on January 8th.
  • On January 4th, the Government announced that additional public health measures that had been put in place until January 8th would now be extended until January 17th, including:
    • Personal gatherings limited to 10 steady contacts plus household;
    • All organized gatherings must operate with a maximum of 50 people;
    • Gyms, fitness facilities, and retail can continue to operate up to 50% capacity;
    • Food premises and eating establishments must stop food and beverage service at approximately 11 p.m. and close by midnight and proof of vaccine is required;
    • Indoor sport and recreational activities continue to be paused for Island children under the age of 12 years; and
    • League play and practices for individuals over the age of 12 are paused.
  • On January 7th, the Government announced it was extending the COVID-19 Emergency Payment for Workers Program and the Emergency Income Relief Program for the Self Employed until January 17th.
  • On January 13th, the Government announced an extension to the existing public health measures, including continuation of online learning for Kindergarten to Grade 12 students, until at least January 24th.
  • On January 18th, the Government announced enhanced public health measures that would remain in place until January 31st, including:
    • Personal gatherings are limited to a single household plus up to two other support people;
    • Organized gatherings are not permitted;
    • Gyms, group fitness classes, and all indoor recreational facilities will be closed;
    • In-room dining and services at eating establishments or licensed premises will be closed;
    • Public and private schools will be closed to in-class learning;
    • Museums, casinos, and bingo halls are closed; and
    • Retail will remain at 50% capacity.
  • On January 20th, the Government announced it was launching the Wage Rebate for Impacted Industries, a new COVID-19 support program that provides a wage rebate on payroll for businesses of impacted industries, such as full-service restaurants and fitness centres, for the period of January 19th to January 31st. The Government also said that both the COVID-19 Emergency Payment for Workers and Emergency Income for Self-Employed program have added a new eligibility period extending to January 31st.
  • On January 26th, the Government announced it was planning to ease public health measures and that effective January 31st:
    • Personal gatherings are permitted with household members plus a maximum, steady and consistent ten people;
    • Organized gatherings, including faith gatherings, wedding and funeral ceremonies, theaters, and concerts are permitted with up to 50 people;
    • Fitness facilities can open with up to 50% capacity;
    • In-room dining can resume with up to 50% capacity; food premises and licenses establishments must stop food and beverage service at approximately 11 p.m. and close by midnight; and
    • Other businesses and organizations, including retail, casinos, museums, and libraries, are permitted to serve the public with up to 50% capacity.
  • The Government also said that the easing of public health measures includes a return to in-class learning for all Kindergarten to Grade 12 public and private schools on January 31st.
  • On December 30th, the Government of Alberta announced that the Kindergarten to Grade 12 winter break would be extended provincewide to January 10th.
  • On December 31st, the Government of Yukon announced new temporary public health measures, including:
    • Limiting indoor personal gatherings to a maximum of 10 people from two households if all eligible people are vaccinated; household members only if any eligible people are unvaccinated;
    • Limiting outdoor personal gatherings to 25 people from a maximum of three households;
    • Limiting indoor organized gatherings to 25 people or 50% capacity, whichever is less; outdoor gatherings limited to 50 people; proof of vaccination is required;
    • Requiring proof of vaccination for table service at restaurants, bars, and nightclubs;
    • Limiting entertainment venues, including movie theatres, theatres, and museums to 25 people or 50% capacity, whichever is less; proof of vaccination is required;
    • Limiting recreation and leisure sites, including gyms, fitness studios, sports facilities, and arts studios to 25 people or 50% capacity, whichever is less; proof of vaccination is required;
    • Limiting businesses and retail to 50% capacity; and
    • Limiting personal services establishments to 25 people or 50% capacity, whichever is less; proof of vaccination is required.
  • The Government said Yukoners are strongly encouraged to follow these new measures immediately and that they would be enforced under the Civil Emergency Measures Act starting January 7th.
  • On January 19th, the Government announced new temporary public health measures were now in effect, including:
    • Indoor social gatherings, group activities, recreational or cultural gatherings, including recreational team sports; group fitness; group recreation, and leisure activities are limited to 10 people from a maximum of two vaccinated households;
    • All indoor organized events including funerals and weddings are postponed until further notice;
    • Outdoor personal gatherings are limited to a maximum of 25 people from up to three households;
    • Outdoor organized events and gatherings limited to 50 people with proof of vaccination;
    • Unvaccinated individuals who live alone can gather with up to one additional household to a maximum of 10 people;
    • Casinos and nightclubs must remain closed until further notice;
    • Proof of vaccination is required for table service at restaurants and bars; there is no seated or dine-in service past 10 p.m.;
    • Stores, banks, and public libraries are limited to 50% venue capacity;
    • Proof of vaccination is required for faith-based gatherings, personal care services, museums, art galleries, and movie theatres and attendance is limited to 25 people or 50% venue capacity, whichever is less.
    • Proof of vaccination is required for recreation and leisure sites including gyms, fitness studios, sport facilities, and arts spaces; for organized events and classes attendance is limited to 10 people from a maximum of two households; and
    • Public saunas and steam rooms or baths are to remain closed.
  • On January 3rd, the Government of Newfoundland and Labrador announced the province would enter Alert Level 4 and that effective January 4th:
    • Households can interact with up to 10 close, consistent contacts from outside your household (Tight 10);
    • Informal gatherings are limited to those in your Tight 10;
    • Gym and fitness facilities, yoga studios, swimming pools, tennis and squash facilities, arenas, and dance studios are permitted to open with a maximum capacity of 50 people or 25%;
    • Group and team sport, arts and recreation activities are suspended;
    • Retail stores, including those in shopping malls, can open at reduced capacity; and
    • Restaurants can open for in-person dining at 50% capacity.
  • On January 17th, the Government announced that the province would remain in the modified Alert Level 4 until at least January 24th.
  • On January 20th, the Government announced that Kindergarten to Grade 12 students, teachers, and staff would return to in-person classes on January 25th.
  • On January 4th, the Government of New Brunswick announced that due to the spread of the Omicron variant, students would not return to public schools on January 10th but would move to home learning beginning January 11th for at least two weeks.
  • On January 13th, the Government announced that all of New Brunswick would move to Level 3 of the COVID-19 winter plan and that the following measures would be in effect from January 15th to January 30th:
    • People must stay within their single-household bubble;
    • Public gatherings are not permitted, and gyms, entertainment centres, spas and salons are not allowed to operate;
    • Restaurants may provide takeout only;
    • Retail businesses may continue to remain open at 50% capacity;
    • Organized team sports are prohibited from games, competition, and practice with people outside of a household bubble.
  • On January 19th, the Government announced it was launching a financial support program that offers nonrepayable grants to self-employed businesspeople who have had to close due to restrictions put in place to slow the spread of COVID-19.
  • On January 27th, the Government announced it was moving back to Level 2 of the winter plan effective January 29th and that:
    • Businesses that needed to close under Level 3, including spas and salons, entertainment centres, gyms, and restaurant dining rooms, will be permitted to reopen at 50% capacity;
    • People must limit their contacts to a maximum of a Steady 10; and
    • Entertainment venues, such as theatres, sports venues, casinos, etc., can resume operating at 50% capacity.
  • On January 4th, the Government of Manitoba announced it was shifting to a one-week remote learning period for most Manitoba students after the holiday break and that most students would return to in-person learning on January 17th.
  • On January 7th, the Government announced that current public health orders, set to expire on January 11th, would be extended until February 1st.
  • On January 28th, the Government announced that these orders would be extended until February 8th.
  • On January 5th, the Government of Nova Scotia announced that restrictions that took effect on December 22, 2021 and were set to expire on January 12th would be extended until January 31st. The Government said that no new restrictions had been added.
  • On January 26th, the Government announced it was extending current provincewide public health restrictions until February 14th.
  • On January 12th, the Government of Canada announced that the repayment deadline for Canada Emergency Business Account (CEBA) loans to qualify for partial loan forgiveness was being extended from December 31, 2022, to December 31, 2023, for all eligible borrowers in good standing.
  • On January 13th, the Government reiterated that as of January 15th, certain categories of travellers, including several essential service providers such as truck drivers, who are currently exempt from entry requirements, will only be allowed to enter the country if they are fully vaccinated.
  • On January 12th, the Government of Saskatchewan announced that current public health orders, including mandatory masking in all indoor public spaces, mandatory self-isolation for cases and close contacts, and proof of vaccination or negative test requirements to access a list of establishments, business, and event venues, would be extended until February 28th.
  • On January 13th, the Government of Nunavut announced it was easing public health restrictions across the territory, and that effective January 17th:
    • Community travel restrictions are lifted;
    • Outdoor gatherings are now permitted to 25 people;
    • Indoor gatherings in dwellings are now allowed up to five people, plus household members;
    • Government, Inuit organizations and all other offices may open;
    • Childcare facilities may open;
    • Indoor public gatherings, including community halls and recreation centres are now limited to 25 people or 25% capacity;
    • Gyms and fitness centres can open to 25 people or 25% capacity for solo workouts only;
    • Libraries and galleries can open to 25 people or 25% capacity;
    • Arenas are now permitted up to 25 people or 25% capacity, as well as 25 spectators; no team sports allowed;
    • All non-essential businesses may open, including personal services such as hair and beauty salons;
    • Group counselling sessions are now open to 10 people;
    • Parks and playgrounds may open, but buildings remain closed; and
    • Restaurants and licensed establishments remain restricted to take-out only.
  • The Government also said that schools would be opening January 24th.
  • On January 24th, the Government announced the following additional public health measures in the Hamlet of Igloolik, effective immediately:
    • Outdoor gatherings are limited to five people;
    • Indoor gatherings are not allowed;
    • Schools will remain closed;
    • All non-essential businesses and government offices are closed;
    • Libraries and arenas are closed;
    • Restaurants may open for takeout only; and
    • In-person group counselling sessions are not allowed.
  • On January 28th, the Government announced that schools in Iqaluit can open to 100% of capacity on January 31st.

Resources

  • Calgary-based Canadian Natural Resources Limited announced a 2022 capital budget of $4.3 billion, which includes $3.6 billion in base capital spending and $0.7 billion in strategic growth capital.
  • Calgary-based Enerflex Ltd. and Exterran Corporation of Texas announced the companies will combine in an all-share transaction pursuant to which Enerflex will acquire all of the outstanding common stock of Exterran for an implied combined enterprise value of approximately USD $1.5 billion. The companies said the transaction is expected to close in the second or third quarter of 2022, subject to shareholder and regulatory approvals and other customary closing conditions.

Other news

  • The Bank of Canada announced it held its target for the overnight rate at the effective lower bound of 0.25%. The target for the overnight rate was reduced by 150 basis points during March 2020.
  • Ontario's minimum wage increased from $14.35 per hour to $15.00 per hour on January 1st.
  • The Government of British Columbia announced on January 11th it was extending the provincial state of emergency until January 18th as some highways were still damaged by flooding and mudslides, and as the potential for further flooding continues.
  • Calgary-based WestJet Airlines Ltd. announced that due to the impact of Omicron, it had made the decision to consolidate approximately 15% of scheduled flights through to January 31, 2022. WestJet later announced that in addition to the January flight consolidation, it had decided to consolidate 20% of its scheduled flights from February 1st through to February 28th.
  • Toronto-based TD Bank Group announced plans to hire over 2,000 technology rolls in 2022 with a specific focus on key skills in new technologies and processes.

United States and other international news

  • The U.S. Federal Open Market Committee (FOMC) decided to keep the target range for the federal funds rate at 0.00% to 0.25%. The last change in the target range was a 100 basis points decrease announced in March 2020. The FOMC also said that the Committee decided to continue to reduce the monthly pace of its net asset purchases, bringing them to an end in early March.
  • The Bank of Japan (BoJ) announced it will apply a negative interest rate of -0.1% to the Policy-Rate Balances in current accounts held by financial institutions at the BoJ and that it will purchase a necessary amount of Japanese government bonds (JGBs) without setting an upper limit so that 10-year JGB yields will remain at around zero percent.
  • The Monetary Policy and Financial Stability Committee of Norway's Norges Bank decided to keep the policy rate unchanged at 0.50%. The last change in the policy rate was a 25 basis points increase in December 2021.
  • OPEC and non-OPEC members announced they had decided to adjust upward the monthly overall production by 0.4 mb/d for the month of February 2022.
  • Washington State-based Microsoft Corp. announced plans to acquire Activision Blizzard Inc. of California, a game developer and interactive entertainment content publisher, in an all-cash transaction valued at USD $68.7 billion. Microsoft said the transaction is expected to close in fiscal year 2023, subject to customary closing conditions, completion of regulatory review, and Activision Blizzard's shareholder approval.
  • California-based Intel Corporation announced plans for an initial investment of more than USD $20 billion in the construction of two new semiconductor factories in Ohio. Intel said construction is expected to begin in late 2022 with production expected to come online in 2025.
  • France-based Airbus SE announced it intends to start 2022 with a recruitment plan of around 6,000 new hires worldwide. Airbus said a third of the total recruitment will be allocated to young graduates.

Financial market news

  • West Texas Intermediate crude oil closed at USD $88.15 per barrel on January 31st, up from a closing value of USD $75.21 at the end of December. Western Canadian Select crude oil traded in the USD $63 to $76 per barrel range throughout January. The Canadian dollar closed at 78.62 cents U.S. on January 31st, down from 78.88 cents U.S. at the end of December. The S&P/TSX composite index closed at 21,098.29 on January 31st, down from 21,222.84 at the end of December.
Date modified: