Chapter 5: Economic Indicators

http://www.financialpost.com/news-sectors/economy/story.html?id=2751010

SUMMARY

Economic data for January of this year showed the strongest one month GDP gain in more than three years. The 0.6% GDP growth figure, released by Statistics Canada, surpassed market expectations of a 0.5% gain, and helped set some new benchmarks. These numbers was driven largely by the goods producing sector, as opposed to consumer spending and housing. Manufacturing produced a 1.9% gain, marking advances for the fifth straight month. These numbers suggest that the Canadian manufacturing sector is making a healthy comeback from the deep declines suffered through the recession. Car makers such as General Motors and Honda are planning to add shifts and increase output at Ontario factories to meet the demands of the auto industry.

CONNECTION

Chapter six was focused more toward macroeconomics. We were introduced to the concept of gross domestic product (GDP) as a way of measuring economic growth and standard of living of a country. The 0.6% growth in GDP mentioned in this article indicates that there is an increase in productivity of goods and services within our country. This increase will improve the standard of living for many Canadian citizens because companies are hiring more workers to meet their demands. Many workers will see an increase in their income which leads to more spending, and ultimately contributing to our economic growth. Also prices may rise due to the increased demand for goods and services since businesses are currently operating at their full potential again.

REFLECTION

The recession not too long ago complicated the lives of many people. Unemployment rates were increasing from month to month and it appeared to get worse as time passed. With this recent report, the light is once again shining through the deep declines suffered through the recession. Many Canadians are back to work and supporting their families with fewer difficulties. In order for our economy to fully recover, this trend needs to continue though out the year so consumers can spend more and further stimulate our economy. With the Olympics bringing in revenue and the increasing employment rates in the summer from students, I believe that we are on a stable road to recovery.