The Big Story Which economic predictions about 2024 actually came true?
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Dec 24, 2024 Doug Porter, Chief Economist at the Bank of Montreal, shares his insights on the unpredictable Canadian economy of 2024. He discusses the unexpected strength of U.S. GDP growth and the complexities of inflation versus unemployment. Porter analyzes the effects of recent U.S. election results on trade and currency while addressing forecasts for oil prices and inflation risks in 2025. Listen in for a fascinating look at how economic predictions are evolving and what they mean for Canada and beyond.
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Bank of Canada's Actions in 2024
- The Bank of Canada's aggressive rate cuts were unexpected, exceeding market predictions.
- Their focus shifted to the rising unemployment rate despite better-than-expected economic performance.
Canadian Job Market and Population Growth
- Canada's job growth matched the US, but high population growth increased unemployment.
- The Bank of Canada reacted strongly to this rise in unemployment.
Impact of Trump's Re-election
- The unexpected re-election of Donald Trump and his tariff threats led to adjustments in economic and political strategies.
- This had a significant impact on the currency market, with the US dollar strengthening against the Canadian dollar.