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Trump and Zelensky Tout Progress Toward Peace Deal Despite Major Sticking Points

   U.S. President Donald Trump and Ukrainian President Volodymyr Zelensky hold a press conference after their lunch meeting at Trump's Mar-a-Lago club. Former U.S. President Donald Trump and Ukrainian President Volodymyr Zelensky struck an optimistic tone after meeting in Florida, suggesting that negotiations toward a potential Ukraine‑Russia peace agreement are nearing completion. Trump described the talks as “very close,” while Zelensky said the two sides had aligned on the majority of key issues. The meeting followed Trump’s recent call with Russian President Vladimir Putin, which he characterized as constructive. Zelensky emphasized that the discussions were productive and that both leaders share a desire to accelerate the path toward ending the conflict. Despite the upbeat messaging, significant obstacles remain. Unresolved issues reportedly include territorial questions, long‑term security guarantees for Ukraine, and the sequencing of troop withdrawals—topics that hav...
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Canada’s economy shrinks in Q3 amid export and consumer woes

 


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Canada’s economy shrinks in Q3 amid export and spending woes

Canada’s economy contracted by 1.1 per cent on an annualized basis in the third quarter of 2023, according to Statistics Canada. This was a much weaker result than expected by analysts and the Bank of Canada, which had forecast a slight growth of 0.1 per cent and 0.8 per cent, respectively.

The main factors behind the economic decline were a drop in exports, a slump in business investment, and a stagnation in consumer spending. Exports fell by 5.1 per cent, reflecting lower shipments of energy products, motor vehicles, and aircraft. Business investment decreased by 10.1 per cent, as firms reduced their spending on machinery and equipment, intellectual property, and non-residential structures. Consumer spending was flat, as households saved more of their income amid rising interest rates.

The only bright spots in the third quarter were government spending, which increased by 7.3 per cent, boosted by a one-time GST/HST credit payment, and residential housing investment, which rose by 8.3 per cent, driven by a surge in new construction.

The Canadian economy also performed poorly compared with the U.S. economy, which grew by 5.2 per cent in the same period. Canada has been more sensitive to the impact of higher interest rates, which have been raised by the Bank of Canada to 5 per cent from 0.25 per cent since early 2022. The central bank has recently signalled that it may pause or reverse its tightening cycle, as inflation has eased and economic growth has faltered.

Some economists believe that the third quarter contraction was a temporary setback and that the economy will rebound in the fourth quarter and beyond. Statistics Canada estimated that GDP grew by 0.2 per cent in October, indicating a modest recovery. However, others warn that the economy may face more headwinds in the new year, such as the ongoing supply chain disruptions, the spread of the new COVID-19 variant, and the uncertainty over the federal fiscal policy.

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