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

QUIZ: How much do you know about British Columbia?

On this B.C. Day long weekend, put your knowledge of our province to the test

Smoke seen over northern B.C. from wildfires in the U.S. and Siberia

Smoke was seen over Vanderhoof, Fort St. James and Prince George on Friday, July 31.

Vanderhoof RCMP urging residents to follow speed limits in the district

Staff Sgt. Laurie Clarkson said the detachment has received multiple calls for speeding

Northern B.C. SAR groups ‘rope rescue’ hiker near Fort Fraser

Volunteers from both Vanderhoof and Prince George helped in the rescue.

Vanderhoof Public Works update for July

Here is a list of completed and ongoing scheduled projects in the district

VIDEO: Otter pups learn to swim at B.C. wildlife rescue facility

Watch Critter Care’s Nathan Wagstaffe help seven young otters go for their first dip

Michael Buble among 13 British Columbians to receive Order of B.C.

Ceremony will be delayed to 2021 due to COVID-19

U.S. border communities feel loss of Canadian tourists, shoppers and friends

Restrictions on non-essential travel across the Canada-U.S. border have been in place since March 2`

Rollout of COVID-19 Alert app faces criticism over accessibility

App requires users to have Apple or Android phones made in the last five years, and a relatively new operating system

Alleged impaired driver sparks small wildfire near Lytton after crash: B.C. RCMP

Good Samaritans prevented the blaze from getting out of control

B.C. First Nation adopts ‘digital twinning’ software to better manage territory

Software allows users to visualize what a mountain might look like if the trees on its slopes were logged

All inquiry recommendations implemented after fatal Port Hardy RCMP shooting: Ministry

The Independent Investigations Office of B.C. cleared the RCMP officers involved of wrongdoing

Leave your deets when dining: Restaurants taking personal info to trace COVID-19

Health officials say indoor dining presents a higher risk

Most Read