Data from 47 countries—representing more than 80 per cent of the global economy—show that exports and business investment slowed sharply late last year. If a company cannot rely on international trade rules, it is not going to make investments to expand capacity and fuel economic growth. Canada’s economic growth slowed late last year, and this weakness is extending into 2019.
Part of this is due to developments in our oil sector and in our housing sector, but the broader effects of trade uncertainty on investment are clearly there. Fortunately, our economy also has areas of strength that are providing a cushion. Some services exports have been growing strongly. More than 350,000 jobs were created over the past year.