Parliamentary Budget Officer Yves Giroux waits to appear before the Commons Finance committee on Parliament Hill in Ottawa, Tuesday March 10, 2020. Parliament’s spending watchdog says a series of rail blockades last month will leave a minimal dent in the pace of economic growth. (Adrian Wyld/THE CANADIAN PRESS)

Minimal hit to economic growth from rail blockades, PBO says in new report

Parliamentary budget officer says COVID-19 will likely have larger effect than blockades

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.

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.

ALSO READ: Wet’suwet’en hereditary chiefs optimistic ahead of talks

ALSO READ: Caution, with a time limit — How Trudeau’s patience with rail blockades ended

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.

ALSO READ: Bank of Canada cuts rate target to 0.75% in response to COVID-19

The Liberals had promised to deliver a budget on March 30, but that is delayed after the House of Commons agreed not to sit until late April to prevent the spread of the novel coronavirus disease.

This report by The Canadian Press was first published March 13, 2020.

The Canadian Press

CN Rail

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

ARTS AROUND: Rollin Art Centre looking for artists to exhibit in 2021

Gallery is currently closed due to COVID-19 concerns

Scotiabank helps hockey at home

Alberni Valley Minor Hockey Association’s annual donation helps peewee teams

Agricultural Land Commission letter could halt operations at McLean Mill

National historic site near Port Alberni set to host a number of events if COVID-19 doesn’t interrupt

Mural planned for entrance to Port Alberni’s Harbour Quay

Arrowsmith Rotary project falls under the theme ‘building relationships’

City of Port Alberni to review 2020 budget in response to COVID-19

Deadline for final budget adoption is May 15

First Nations, remote communities need special attention in pandemic, Freeland says

Health-care workers, seniors, Indigenous Peoples some of people most at risk, health officials say

An ongoing updated list of Alberni Valley events affected by COVID-19

Has your event been cancelled or postponed? Check here

Controversial Cowichan tiny house still in place after removal deadline

Cowichan Valley Regional District had ordered it removed by March 15

Call before you dig into spring projects during isolation: BC 1 Call

BC 1 Call gives free checks for utilities in the area of a desired outdoor project

B.C.’s intersection speed cameras putting more tickets in the mail

One Nanaimo location delayed after speed limit reduced

B.C. records five new COVID-19 deaths, ‘zero chance’ life will return to normal in April

Province continue to have a recovery rate of about 50 per cent

High cost, limited coverage for asthma medicine a concern during COVID-19 pandemic

B.C. man says he skips puffs to save money, but others have it worse

Vancouver Island’s ‘Project Draw Breath’ expands and diversifies to battle pandemic

Grassroots team working to up supplies of ventilators, other equipment during COVID-19 crisis

B.C. man sick with COVID-19 calls it a ‘horrible disease’

Tim Green says he has ‘extreme coughing fits every hour’ to clear his lungs

Most Read