This presentations looks at different aspect of the Canadian economy including key areas like GDP, Retail Sales, Exports, Housing Sales, Innovation and Infrastructure

1. CANADA SLOW GROWTH –
WHAT NEEDS TO HAPPEN?
By: Paul Young, CPA, CGA

2. PAUL YOUNG, CPA, CGA – BIO
• 26+ years if experience in finance, accounting, costing, business strategy, taxation,
mergers/acquisition, academia, internal audit/controls, risk management, financial
solutions
• Email: Paul_Young_CGA@Hotmail.com

3. AGENDA
• Slow Economic Growth
• GDP Rates / Slow Growth
• GDP by Segments
• What are the next types of businesses?
• How does the government support new businesses?
• Training and Skills development
• Exports
• Value of Exports
• What can be done to expand exports?
• Retail Sales
• Value of Exports
• What can be done to expand exports?
• Housing Market
• Housing Market Analysis
• What can be done?
• Government Spending
• Housing Market Analysis
• What can be done?

4. SLOW ECONOMIC GROWTH
• Liberal Economic Council – Key Quotes “he global expert who heads the Trudeau
government’s economic advisory council has offered a glimpse into the group’s
brainstorming sessions on how best to lift Canada’s drooping growth prospects.
Dominic Barton shared details of the team’s focal points during his appearance this
week at a public policy summit in Ottawa. They include easing immigration rules to
attract more talent, retraining swaths of the workforce to adjust to the rapid rise in
automation and creating what he calls the world’s first infrastructure agency
designed to rake in private and foreign capital. Source:
http://www.canadianmanufacturing.com/regulation/trudeaus-economic-guru-
offers-sneak-peak-on-reviving-growth-177211/

5. SLOW GROWTH
• Growth is measure by change in GDP. Canada has been experiencing slow growth
for over 12+ years. http://www.gbm.scotiabank.com/English/bns_econ/forecast.pdf
• You will see based on BNS Analysis
Source – Scotiabank
Factors impacting Growth
• Commodity Prices
• Consumer Demand
• Exports
• Demographics
• Government Policies

6. CANADA GDP BY SEGMENT
Source – Stats Canada
GDP Analysis
• Approximately 30% of GDP
is good producing
• Approximately 70% of GDP
is the service sector
How do you grow GDP?
• Opening new markets (Exports)
• Innovation/R&D to support next
generation of businesses
• Government policies related to
consumer spending

7. WHAT ARE THE NEXT TYPES OF
BUSINESSES
• 3-D Printing
• Energy Storage
• Expert Farming
• Microgrids
• Pre-fab housing
• Drones
• Driver-less cars
• eCommerce
• Source - http://www.slideshare.net/paulyoungcga/2016-employment-outlook-canada

8. HOW DOES THE GOVERNMENT CREATE
POLICIES TO SUPPORT NEXT
GENERATION OF BUSINESS
• Cultivate innovation
• Focusing on private and public partnership through creation innovation centers at all
Colleges and Universities across Canada
• Continue to promote tax programs, like R&D Tax Credits or Stock Options or cuts to EI
for small to medium size business
• Continue to look at programs like SDTC or Next Generation Biofuels or Industry specific
funds
• Partnering with all levels of government to cut down red tape and regulation to help
businesses spend more time growing their business.
Source: http://www.slideshare.net/paulyoungcga/canadian-manufacturing-analysis-
including-trends-and-assessment-of-government-policies

9. REVAMPING EDUCATION
• Education systems needs to be align with needs of business
• Provincial government need to revamp the apprenticeship programs as part
opening up the skills trades to more individuals
• Tax Policies
• Hiring credits and/or other training credits should be promoted as part of assisting
companies with development of their employees
Source: http://www.slideshare.net/paulyoungcga/government-policies-education-skills-
development-canada-october-2-2016

10. EXPORTS
Source – Stats Canada
Analysis:
• Canada exports account for about 25% of GDP. Canada is export driven country.
• For each $1B in exports there is 5,500 indirect/direct jobs created
• Goods producing jobs pay on average $350/week as compare to service sector jobs -
Sources: http://www.slideshare.net/paulyoungcga/wages-and-employment-canada-
july-2016

11. WHAT CAN BE DONE TO SUPPORT
EXPORTS
• Investment in infrastructure that supports moving goods to market (Bridges, ports, roads)
• More Trade Agreements and FIPA Deals – FYI – Trade Deals to be fair deals
• Cutting red and regulation down as part getting projects off the ground (mines, pipelines, food
processing plants, etc
• Provincial Policies
• Approval of Natural Resource projects
• Controlling growth in Hydro Rates
• Reducing red tape and regulations
• Tax policies
• Ensure Canada has competitive tax policies with the rest of the world
• Encouraging more investment in capital assets by keeping the CCA rules for the write-down of
machinery and equipment

12. RETAIL SALES
Areas of focus:
• Retail sales are approximately $540B and growing at about rate of 1.5% to 2.2%
• Retail market is going through changes with more and more adoption of
eCommerce
• Retail Market is influence by taxation (Duties, Tarriffs, carbon taxation, etc)
Source: Stats Canada / http://www.slideshare.net/paulyoungcga/canada-retail-sales-
for-july-2016

13. WHAT CAN BE DONE TO SUPPORT
RETAIL SALES
• Reduction of Tariffs and Duties (USA vs Canadian Pricing)
• No increases to sales taxes (Provincial or GST)
• Towing the line when it comes to payroll tax increases
• Capping growth in hydro rates
• Reducing red tape and regulations
• Promote local buying

14. HOUSING MARKET
Issues:
• Housing prices on average have been growing at rate of 8% for the past few years. The 8%
growth rate is higher than wage growth and GDP growth
• Housing prices are not sustainable as income growth has stagnated
• Foreign ownership of property has increase the speculation and push up prices
• Ridiculous bids and asks for housing
• No Integrated strategy when it comes to the housing market (Provinces, Municipalities,
Federal Government and the Private Sector
• Source: http://www.slideshare.net/paulyoungcga/real-estate-trends-and-analysis-for-
canada-august-2016

15. GOVERNMENT SPENDING/DEFICITS
Issues:
• Slow economic growth leads to pressure on government revenues
• Today’s deficit and Debt are tomorrow hike in taxation or spending cut
• Government needs to be transformed including more value for money as well as
balance budget laws.

16. HOW DO GOVERNMENT DEFICITS AND
DEBT INFLUENCE ECONOMIC GROWTH
• High government deficit may force government into making cuts to program
spending.
• Companies do not like to invest in countries due to possibilities of taxes will be
increased
• Raising taxes does not grow an economy.
Https://www.youtube.com/watch?v=hWarBMfshaA
Sources: http://www.slideshare.net/paulyoungcga/what-does-government-deficits-
and-debt-mean-to-youppt

17. SUMMARY
• The economic council is a good idea as it brings new ideas to a government . Will
the government implement the suggestions?
• There is no easy solution to fixed slow growth as there many pieces of the puzzle
• Government cannot do tax increases and then expect business can absorb those
new taxes. In the end the business will pass those costs on to the consumers -
http://www.slideshare.net/paulyoungcga/how-do-corporate-profits-flow or
http://www.slideshare.net/paulyoungcga/what-is-carbon-tax-or-a-price-for-carbon