The Big Story

Weekend listen: Rating the overall health of the Canadian economy

Aug 10, 2025
In this insightful conversation, Don Drummond, an economist and fellow at Queen's University and the C.D. Howe Institute, discusses the current state and future outlook of the Canadian economy. He highlights the effects of tariffs and trade challenges on sectors like steel and agriculture. Drummond critiques government spending and the growing complexities in budgeting, advocating for transparency and efficiency. The discussion also touches on labor market fluctuations and the inflation control issues facing today's youth, revealing the intricate tapestry of economic factors at play.
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ANECDOTE

Pickleball Break From Politics

  • Don Drummond plays lots of pickleball to decompress during the summer.
  • He says he tried not to follow everything Trump does but finds it hard to ignore.
INSIGHT

Q1 Growth Was Pulled Forward

  • Don Drummond says Q1's 2.2% GDP gain reflected firms shipping exports ahead of tariffs.
  • The Bank of Canada estimates Q2 contracted about 1.5%, leaving first-half growth effectively flat.
INSIGHT

Supply Chains Can't Pivot Quickly

  • Don Drummond describes 'uncertainty paralysis' among CEOs disrupting quick fixes like replacing U.S. steel.
  • He notes retooling plants or shifting fresh agricultural exports is costly, slow, and often infeasible.
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