Canadian Economic News, April 2024 Edition

This module provides a concise summary of selected Canadian economic events, as well as international and financial market developments by calendar month. It is intended to provide contextual information only to support users of the economic data published by Statistics Canada. In identifying major events or developments, Statistics Canada is not suggesting that these have a material impact on the published economic data in a particular reference month.

All information presented here is obtained from publicly available news and information sources, and does not reflect any protected information provided to Statistics Canada by survey respondents.

Resources

  • Calgary-based Parkland Corporation announced that the Burnaby Refinery safely returned to normal operations on March 29th following an unplanned shutdown originating from extreme cold weather on January 12th.
  • Calgary-based Trans Mountain Corporation announced that the Commencement Date for commercial operation of the expanded system would be May 1, 2024.
  • On April 9th, the Government of Newfoundland and Labrador informed World Energy GH2 Limited Partnership that under the authority of the Environmental Protection Act, it had released the Port au Port-Stephenville Wind Power and Hydrogen Generation Project (Project Nujio'qonik GH2) from further environmental assessment and said that the Environmental Impact Statement (EIS) submitted on August 22, 2023 complies with the Environmental Protection Act and had been accepted.
  • The Government of Ontario announced it is supporting Ontario Power Generation's (OPG) $1 billion plan to refurbish its hydroelectric stations in the Niagara region. The Government said OPG and its partner will refurbish up to 25 units in total at the Sir Adam Beck Complex as the first phase of this work beginning in 2025 and that work will take place over the next 15 years.

Government budgets

  • On April 16th, the Government of Canada tabled Budget 2024, which included investments in affordable housing, health care, education, the environment, national defence, and Indigenous Peoples, as well as proposals to lower everyday costs, boost research, innovation, and productivity, and improve tax fairness. The Government forecasts a $39.8 billion deficit in 2024-2025 and real GDP growth of 0.7% in 2024 and 1.9% in 2025.
  • On April 2nd, the Government of Manitoba delivered Budget 2024, which included investments in health care, education, and infrastructure as well as lowering costs for families. The Government forecasts a $796 million deficit for 2024-2025 and real GDP growth of 0.6% in 2024 and 1.9% in 2025.

Minimum wage

  • The federal minimum wage increased from $16.65 to $17.30 per hour on April 1st.
  • Newfoundland and Labrador's minimum wage increased from $15.00 to $15.60 per hour on April 1st.
  • Nova Scotia's minimum wage increased from $15.00 to $15.20 per hour on April 1st.
  • New Brunswick's minimum wage increased from $14.75 to $15.30 per hour on April 1st.
  • Yukon's minimum wage increased from $16.77 to $17.59 per hour on April 1st.

Manufacturing

  • Michigan-based Ford Motor Company announced it is retiming the launch of upcoming electric vehicles at its Oakville, Ontario, assembly plant to 2027 from 2025. Ford said the transformation of Oakville Assembly Plant is set to begin in the second quarter, as planned.
  • Japan-based Honda Motor Co., Ltd. announced it plans to build an electric vehicle (EV) value chain in Canada, with an approximate investment of $15 billion, which will include a Honda EV plant and a stand-alone Honda EV battery plant in Alliston, Ontario, as well as a cathode active material and precursor (CAM/pCAM) processing plant and a separator plant. Honda said it expects that electric vehicle production will begin in 2028 and that once operational, the EV plant will have a production capacity of 240,000 EV's per year. The Governments of Canada and Ontario said Honda's new investments in eligible EV supply chain segments could benefit from federal support in the range of $2.5 billion through tax credits and that in addition, the Government of Ontario will provide support of up to $2.5 billion for these segments through various direct and indirect incentives.
  • Burnaby, British Columbia-based Ballard Power Systems announced the signing of a Long Term Supply Agreement with Solaris Bus & Coach sp. z o.o. of Poland for the supply of 1,000 hydrogen fuel cell engines through 2027 for the European transit bus market.

Other news

  • The Bank of Canada held its target for the overnight rate at 5.0%. The last change in the target for the overnight rate was a 25 basis points increase in July 2023. The bank said it is also continuing its policy of quantitative tightening.
  • Montreal-based Nuvei Corporation, a fintech company, announced it had entered into a definitive arrangement agreement to be taken private by Advent International of Boston, a global private equity investor, in an all-cash transaction which values Nuvei at an enterprise value of approximately USD $6.3 billion. Nuvei said the transaction is expected to close in late 2024 or the first quarter of 2025, subject to court and shareholder approval and customary closing conditions, including receipt of key regulatory approvals.
  • Montreal-based Lightspeed Commerce announced a reorganization that the company said would impact approximately 280 roles representing about 10% of its headcount-related operating expenditures.

United States and other international news

  • The European Central Bank (ECB) kept its three key interest rates unchanged at 4.50% (main refinancing operations), 4.75% (marginal lending facility), and 4.00% (deposit facility). The last change in these rates was a 25 basis points increase in September 2023. The ECB said it intends to discontinue reinvestments under the pandemic emergency purchase programme (PEPP) at the end of 2024.
  • The Reserve Bank of New Zealand (RBNZ) left the Official Cash Rate (OCR), its main policy rate, unchanged at 5.50%. The last change in the OCR was a 25 basis points increase in May 2023.
  • The Bank of Japan announced it will encourage the uncollateralized overnight call rate to remain at around 0% to 0.1%. The Bank of Japan ended its negative interest policy in March, 2024.
  • Atlanta, Georgia-based The Home Depot announced it had entered into a definitive agreement to acquire SRS Distribution Inc. of Texas, a residential specialty trade distribution company, for a total enterprise value of approximately USD $18.25 billion, including net debt. The company said the closing of the acquisition is expected to be completed by the end of fiscal 2024, subject to customary closing conditions, including regulatory approvals.
  • New York-based Blackstone Inc. and Apartment Income REIT Corp. (AIR) of Colorado announced they had entered into a definitive agreement under which Blackstone Real Estate Partners X will acquire all outstanding shares of AIR Communities in an all-cash transaction valued at approximately USD $10 billion. The companies said the transaction is expected to close in the third quarter of 2024, subject to approval by AIR Communities' stockholders and other customary closing conditions.
  • California-based Johnson & Johnson and Shockwave Medical, Inc. of New Jersey announced they had entered into a definitive agreement under which Johnson & Johnson will acquire all outstanding shares of Shockwave for an enterprise value of approximately USD $13.1 billion. The companies said the closing of the transaction is expected to occur by mid-year 2024 subject to the receipt of Shockwave's shareholder approval, as well as the receipt of applicable regulatory approvals and other customary closing conditions.

Financial market news

  • West Texas Intermediate crude oil closed at USD $81.93 per barrel on April 30th, down from a closing value of USD $83.17 at the end of March. Western Canadian Select crude oil traded in the USD $68 to $74 per barrel range throughout April. The Canadian dollar closed at 72.75 cents U.S. on April 30th, down from 73.80 cents U.S. at the end of March. The S&P/TSX composite index closed at 21,714.54 on April 30th, down from 22,167.03 at the end of March.