Yet further evidence of Canada’s weakening economy.
It’s ‘interesting’ how a bunch of bad economic news has emerged only after the federal election.
The Liberals and establishment press kept pushing the narrative of a ‘strong economy,’ yet the evidence for a long time has been going in exactly the opposite direction.
Now, there is more:
Insolvencies in Canada have surged by a whopping 8.4% in the past year alone, on track for the largest increase in a decade.
Even worse, business bankruptcies are set to increase for the first time since 2001.
As noted by Andre Bolduc of the Canadian Association of Insolvency and Restructuring Professionals, a weak economy and rising cost of living is largely to blame:
Insolvencies have risen amid a slowing economy and the lagging effect of higher interest rates that make it more difficult for borrowers to keep up with payments.
‘”There is a strong correlation between interest rate changes and consumer filings but we see a two to three year lag between rate increases and a growth in the number of insolvencies,” stated Andre Bolduc, an association board member.
“Sustained increases in living costs and debt servicing costs have created an environment in which more people are struggling to stick to their repayment terms.”
This is clearly a devastating combination. A weakening economy, a rising cost of living, and an increasing burden of debt causing rising bankruptcies.
Does any of that sound like a good economy to you?
This should have been a key point of argument during the federal election campaign. The Liberals have been systematically lying to Canadians about the economy, trying to make it look ‘good’ when it’s really getting worse.
With Bill Morneau maintaining his post as finance minister, and with Trudeau still imposing his damaging carbon tax and restrictions on the energy industry, we can expect the bad economic news to continue.