Canadian Economic News, March 2024 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.

Resources

  • Calgary-based TC Energy Corporation announced it had entered into a purchase and sale agreement to sell Portland Natural Gas Transmission System, a 475-kilometer transporter of natural gas serving the upper New England and Atlantic Canada markets, to Blackrock of New York for a gross purchase price of USD $1.14 billion. TC Energy said the transaction is expected to close in mid-2024, subject to the receipt of regulatory approvals and customary closing conditions.
  • Calgary-based Imperial Oil Limited announced on March 17th that it was putting temporary transportation measures in place, including truck and rail, to maintain regular fuel supplies to the Winnipeg region following unplanned maintenance on Imperial's  Winnipeg Products Pipeline. Imperial said the line would be out of service for approximately three months beginning in mid-March.

Government Budgets

  • On March 7th, the Government of Yukon tabled its Budget 2024-2025, which included investments in health care, education, infrastructure, and environmental stewardship. The Government forecasts a $119 million surplus for 2024-2025 and real GDP growth of 1.6% in 2024 and 3.0% in 2025.
  • On March 12th, the Government of Quebec presented Budget 2024-2025, which included investments in health and social services, education, supporting seniors, promoting access to housing, and protecting the environment and adapting to climate change. The Government forecasts an $11.0 billion deficit for 2024-2025 and real GDP growth of 0.6% in 2024 and 1.6% in 2025.
  • On March 19th, the Government of New Brunswick tabled its 2024-25 budget, which included investments in health care, housing, supporting vulnerable populations, and education. The Government forecasts a $41.0 million surplus for 2024-2025 and real GDP growth of 0.7% in 2024 and 1.7% in 2025.
  • On March 20th, the Government of Saskatchewan tabled its 2024-25 Provincial Budget, which included investments in health care, education, communities, and infrastructure. The Government forecasts a $273.2 million deficit for 2024-2025 and real GDP growth of 1.0% in 2024 and 1.8% in 2025.
  • On March 21st, the Government of Newfoundland and Labrador released Budget 2024, which included investments in health care, the well-being of seniors, poverty reduction, housing, and infrastructure. The Government forecasts a $152 million deficit for 2024-2025 and real GDP growth of 5.1% in 2024 and 6.9% in 2025.
  • On March 26th, the Government of Ontario released its 2024 Budget, which included investments in infrastructure, health care, and education as well as addressing Ontario's housing supply, support for businesses, and skills development. The Government forecasts a $9.8 billion deficit in 2024-2025 and real GDP growth of 0.3% in 2024 and 1.9% in 2025.

Other news

  • The Bank of Canada held its target for the overnight rate at 5.0%. The last change in the target for the overnight rate was a 25 basis points increase in July 2023. The bank said it is also continuing its policy of quantitative tightening.
  • The Government of Canada announced it is proposing to cap the inflation adjustment for excise duties on beer, spirits, and wine at 2.0% for an additional two years and cut by half the excise duty rate on the first 15,000 hectolitres of beer brewed in Canada for two years. The Government said these measures would be in effect starting on April 1, 2024.
  • The Government of Canada announced it will expand the Immigration Levels Plans to include both temporary and permanent resident arrivals and that it will include a target in order to reach an adequate volume of temporary residents Canada can welcome. The Government said that as a starting point it is targeting a decrease in its temporary residents population to 5.0% over the next three years from 6.2% of the population in 2023.
  • The Government of Saskatchewan announced it is moving forward with constructing the early works of the first 90,000 acres of the Lake Diefenbaker Irrigation Project, with major construction being targeted for 2025. The Government said total cost is estimated to be $1.15 billion which will be shared between the provincial government and producers who choose to participate in the project.
  • Toronto-based The Body Shop Canada Limited announced it had commenced restructuring proceedings by filing a Notice of Intention to Make a Proposal pursuant to the Bankruptcy and Insolvency Act (Canada). The company said that all of The Body Shop Canada's 105 store locations are currently open for business, however online sales via Canada's ecommerce store will stop and certain stores will close in the near term.
  • United Kingdom-based AstraZeneca announced it had entered into a definitive agreement to acquire Fusion Pharmaceuticals Inc. of Hamilton, Ontario for a transaction value of approximately USD $2.0 billion. AstraZeneca said the transaction is expected to close in the second quarter of 2024, subject to customary closing conditions, including the approval of Fusion shareholders and regulatory clearances.
  • Toronto-based Canada Goose Holdings Inc announced a redesign of its global corporate workforce, representing a reduction of approximately 17% of corporate roles.
  • Toronto-based Manulife Financial Corporation announced it had agreed to reinsure $5.8 billion of reserves of low return on equity (ROE) Canadian Universal Life block to RGA Life Reinsurance Company of Canada. Manulife said the transaction is expected to close early in the second quarter of 2024 and is not subject to closing conditions.

United States and other international news

  • The U.S. Federal Open Market Committee (FOMC) maintained the target range for the federal funds rate at 5.25% to 5.50%. The last change in the target range was a 25 basis points increase in July 2023. The Committee also said it will continue reducing its holdings of Treasury securities and agency debt and agency mortgage-backed securities.
  • The European Central Bank (ECB) kept its three key interest rates unchanged at 4.50% (main refinancing operations), 4.75% (marginal lending facility), and 4.00% (deposit facility). The last change in these rates was a 25 basis points increase in September 2023. The ECB said it intends to discontinue reinvestments under the pandemic emergency purchase programme (PEPP) at the end of 2024.
  • The Bank of Japan (BoJ) announced it will end its negative interest rate policy, in effect since January 2016, and instead will encourage the uncollateralized overnight call rate to remain at around 0.0% to 0.1%. The BoJ said that, in order to achieve this guideline, it will apply an interest rate of 0.1% to current account balances held by financial institutions at the BoJ.
  • The Reserve Bank of Australia (RBA) left the cash rate target unchanged at 4.35%. The last change in the cash rate target was a 25 basis points increase in November 2023.
  • The Bank of England's Monetary Policy Committee (MPC) voted to maintain the Bank Rate at 5.25%. The last change in the Bank Rate was a 25 basis points increase in August 2023.
  • The Monetary Policy and Financial Stability Committee of Norway's Norges Bank left the policy rate unchanged at 4.5%. The last change in the policy rate was a 25 basis points increase in December 2023.
  • The Executive Board of Sweden's Riksbank left the repo rate unchanged at 4.0%. The last change in the repo rate was a 25 basis points increase in September 2023.
  • The United States Department of Agriculture (USDA) announced the finalization of a "Product of USA" rule that allows a voluntary "Product of USA" or "Made in the USA" label to be used on meat, poultry and egg products only when the products are derived from animals born, raised, slaughtered and processed in the United States. The USDA said that establishments voluntarily using a claim subject to the final rule will need to comply with the new regulatory requirements by January 1, 2026.
  • OPEC announced that several OPEC+ countries, including Saudi Arabia, Iraq, and the United Arab Emirates, agreed to extend additional voluntary cuts of 2.2 million barrels per day for the second quarter of 2024. OPEC said these cuts would be in addition to the announced voluntary cut by the Russian Federation for the same period.
  • Virginia-based Dollar Tree, Inc. announced it plans on closing approximately 600 Family Dollar stores in the first half of fiscal 2024. The company said that additionally, approximately 370 Family Dollar and 30 Dollar Tree stores will close over the next several years at the end of each store's current lease term.
  • United Kingdom-based Unilever announced steps to accelerate its Growth Action Plan through the separation of Ice Cream, and that the proposed changes are expected to impact around 7,500 predominantly office-based roles globally.

Financial market news

  • West Texas Intermediate crude oil closed at USD $83.17 per barrel on March 28th, up from a closing value of USD $78.26 at the end of February. Western Canadian Select crude oil traded in the USD $59 to $69 per barrel range throughout March. The Canadian dollar closed at 73.80 cents U.S. on March 28th, up from 73.69 cents U.S. at the end of February. The S&P/TSX composite index closed at 22,167.03 on March 28th, up from 21,363.61 at the end of February.
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