Wet’suwet’en solidarity blockades had minimal impact on Canadian economy: PBO

OTTAWA – Parliament’s spending watchdog says a series of rail blockades last month will leave a minimal dent in the pace of economic growth.

The report today estimates the blockades will shave two-tenths of a percentage point off economic growth for the first quarter, with the effects dissipating through the rest of 2020.

READ MORE: Trudeau Liberals approval rating spikes amid possible Wet’suwet’en blockade resolution

The rail blockades sprung up in solidarity with Wet’suwet’en hereditary chiefs in B.C. who oppose a natural-gas pipeline through their traditional territory.

Parliamentary budget officer Yves Giroux says COVID-19 will likely have a larger effect on the economy than the blockades, warning the novel coronavirus has made the short-term economic picture far bleaker than it was just a few weeks ago.

2:02 Indigenous people facing more racism due to blockades

• Indigenous people facing more racism due to blockades
• Blockades in Kahnawake continue despite agreement
• Wet’suwet’en chiefs, government ministers announce breakthrough agreement
• After the blockades: is there a path forward for reconciliation?
• Rail blockade near Montreal is dismantled
• Rail blockades: Trudeau says it’s ‘never appropriate’ to deploy military against Canadian citizens
• Protesters set up new rail blockade in Montreal

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His comments comes as private-sector economists warn that Canada is heading into a recession because of the economic shock of COVID-19, which may only be avoided with hefty stimulus spending from the federal government – as much as $20 billion.

Finance Minister Bill Morneau is expected to address reporters this afternoon, one day after he tried to reassure volatile markets that continued to fall over COVID-19 concerns.