MAY 1, 2016, a wildfire began southwest
of Fort McMurray, Alberta, Canada. Two
days later, it swept through the community,
destroying more than 2,400 homes and buildings and forcing
the largest wildfire evacuation in Alberta’s history. The fire
continues to spread across remote forested areas of northern
Alberta, and has impacted Canada’s oil sand operations. The
wildfire may become the most costly disaster in Canadian
history. Although still burning, the fire has already consumed
580,000 hectares.
Currently 90,000 people are set to return to their homes
in the coming days. While homes and industry in Fort
McMurray have been destroyed, Canadians have rallied to
meet the challenge of this horrific event. Perhaps the disaster
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at Fort McMurray is a fitting metaphor to what has been
happening in Canada, particularly the western provinces in
these last 18 months. Having friends that are economists and
being a member of the Institute of Corporate Directors, the
economy of Canada is a day-to-day topic at hand. But before
we get to my personal opinion regarding the matter, let’s
review economic facts.
THE FIRST QUARTER OF 2016 FACTS
A few data points for the general health of our economy:
GDP, unemployment rate, interest rates, real estate, and
consumer spending. Looking at Canada as a whole things
are not too bad. The first quarter started out in January (as
labeled by a Bank of Montreal economist) as “rip roaring” at
0.6% growth. While it seems like hardly anything to write
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