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.
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.