Trying to sort the wheat from the chaff in the push-pull of the global economy right now is even challenging the seasoned economic observers.
But one who offers some insight worth noting is Peter Andersen. A former senior economist with the Bank of Canada, he headed south to teach in Texas but remains in touch with his Canadian roots preparing a monthly newsletter for CEOs and executives who are part of TEC Canada’s leadership development programs.
His latest assessment hits the target on the contradictions we see in the economy right now.
On one side we have strong job gains, a buoyant housing market and consumer spending lifting the economy while high interest rates and inflation are a drag and trying to figure out which will win the tug-of-war makes long-term decision making difficult.
He also cautions that inflation declines will slow in the months ahead as we catch up to the baseline months of the past year. In other words, inflation remains sticky and further interest rate hikes could be on the horizon.
