Oil price drop means lost billions for Canada, CIBC says – Business – CBC News.
The dramatic decline in oil prices will cost Ottawa about $5 billion in lost revenue and provincial economies a little more than that, one of Canada’s biggest banks suggested today.
That’s one of the main takeaways from a CIBC report that attempts to quantify the impact of plunging oil prices on many aspects of Canada’s economy.
“The recent dive in crude oil prices is an unprecedented development for the Canadian economy,” the report by CIBC economists Avery Shenfeld, Peter Buchanan and Warren Lovely says.
There’s a broad consensus that the declining price of oil is bad economic news for Canada, since the country has made major moves in the last decade or so to increase oil output and become a major global player in energy.
Last week, the Bank of Canada estimated that on the whole, suddenly cheaper oil will knock about a third of a percentage point off of Canada’s GDP next year. But the CIBC report points out that gauging the impact of that decline is far more complex than simply measuring the impact on GDP.
