Weekly Digest – 22 November 2023

Welcome to our Weekly Digest – stay in the know with some recent news updates relevant to business and the economy.

Canadian Housing Markets Struggle: Uncovering the Key Challenges

top view photo of houses

Canada’s housing market is undergoing a significant transformation, with major cities like Vancouver and Toronto experiencing a notable slowdown in home sales. This change has caught many home sellers off guard, particularly those who didn’t anticipate it. The once-booming real estate industry, known for rapid sales and bidding wars, now reflects a more cautious buyer sentiment.

Gone are the days of lightning-fast home sales and bidding wars; sellers must now navigate a market where buyers are more discerning and deliberate in their choices. This shift serves as a reminder that markets are dynamic and subject to change, offering sellers an opportunity to adapt and thrive in a more balanced and thoughtful real estate landscape.

Navigating Economic Turbulence: Canada’s Call to Boost Financial Know-How

financial literacy, finances, business, savings

In November, Financial Literacy Month in Canada focuses on equipping individuals with essential knowledge and awareness to navigate uncertain times. It’s crucial to empower Canadians by enhancing their financial decision-making skills, ensuring they understand various options for optimizing their finances. In an ever-changing economic landscape, financial literacy education plays a pivotal role in helping people manage their finances effectively, make informed choices, and positively impact their long-term financial well-being. Promoting financial literacy contributes not only to individual success but also to the overall economic prosperity of the nation, creating a more resilient and empowered society.

Financial Literacy Month reminds us to prioritize personal finance education and awareness. It encourages individuals to take proactive steps to improve their financial literacy through resources, workshops, and guidance. The ultimate goal is to cultivate a society where people are financially literate, confident in their decision-making, and in control of their financial futures, leading to a more prosperous and secure tomorrow.

Canada’s Call to Businesses: Diversify or Risk Recession Impact

Canada, canadian business, international business, trade, global trade, domestic economy, international economy, recession, politics, high interest rates

A recent report by QBE Canada has highlighted the formidable challenges confronting Canadian businesses engaged in international trade. These obstacles stem from a combination of factors, including a domestic economic slowdown, surging interest rates, and the disruptive consequences of catastrophes and geopolitical risks. The sluggish domestic economic growth has had a ripple effect, making it increasingly difficult for Canadian companies to expand and sustain their international operations.

Elevated borrowing costs due to high interest rates have also hampered investment initiatives, limiting businesses’ ability to secure capital for expansion and innovation. Additionally, natural disasters and geopolitical uncertainties introduce further disruptions, affecting supply chains and decision-making for Canadian businesses involved in global trade. These multifaceted challenges underscore the need for strategic adaptation in navigating the complex global economic landscape effectively.

Open Banking Revolution: Private Member’s Bill Presented in Ottawa

Kedden Business Services
Kedden Team
Business Updates

Canada’s financial landscape is undergoing a significant change with the introduction of Bill C-365, known as the Consumer-Led Banking Act. This private member’s bill seeks to establish an open banking framework in Canada, taking inspiration from successful models in the United Kingdom and Australia. Open banking allows customers to securely share their financial data with authorized third-party service providers, promoting competition, innovation, and giving consumers more control over their finances.

Bill C-365 reflects Canada’s growing recognition of open banking’s transformative potential, aiming to enhance the financial ecosystem, promote inclusivity, and drive economic growth. If passed into law, Finance Minister Chrystia Freeland would oversee the implementation of open banking, creating a regulatory framework to protect consumer data privacy, ensure cybersecurity, and foster fair competition among financial institutions and newcomers. While open banking has succeeded in other countries, its implementation in Canada will be tailored to the nation’s unique financial landscape. This move could revolutionize how Canadians interact with their finances, emphasizing transparency, innovation, and efficiency. However, discussions about data security, privacy, and industry concentration will be pivotal in shaping a balanced and beneficial open banking system in Canada.

Small Canadian Businesses Unite Against Carbon Tax

carbon tax, canada, taxes, canadian businesses

A recent report by the Canadian Federation of Independent Business (CFIB) has brought to the forefront the widespread dissatisfaction among small businesses in Canada regarding the federal carbon tax. According to the report, a substantial 85% of these businesses are opposed to the tax, prompting the CFIB to call on the government for prompt and effective action in addressing their concerns. This report serves as a clear wake-up call, revealing the deep-seated frustrations experienced by small businesses nationwide concerning the implementation of the federal carbon tax.  These businesses, crucial to the Canadian economy, collectively voice their dissent, underscoring the urgent need for the government to acknowledge and respond to their grievances.

The CFIB makes a compelling case, highlighting that the majority of small businesses oppose the carbon tax due to its negative impact on their operational costs, profitability, and overall competitiveness. This additional financial burden compounds the challenges these enterprises already face as they navigate the ongoing global pandemic. To address this growing discontent and ease the burden on small businesses, the government should initiate an open and transparent dialogue with business owners. This dialogue should focus on understanding the specific challenges faced by these enterprises and exploring alternative solutions that strike a balance between environmental objectives and the survival of small businesses.

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