May 6 Market Update weekly email: we’re aware of the issue with aligned advisors and wholesalers. This has now been corrected. We apologize for the confusion caused by the previous email.

Economic pulse in Canada and around the world

The Canadian 2024 Federal budget was released in April. According to the budget, the Government expects an ongoing deficit to be $39.8 billion in 2024-25, and declining over the three years following, to $20 billion by 2028-29. The capital gains inclusion rate was raised to 66% for the high-net-worth, trusts and corporations. The Bank of Canada (BoC) held its benchmark overnight interest rate steady at 5.00%. The BoC wants to see more progress towards its 2% inflation.

Around the world, the U.S. economic growth slowed over the first quarter of 2024. Consumer and business spending slowed over the quarter. Conversely, real estate investment was a key contributor to growth. China’s trade activity dropped in March, suggesting weak global and domestic demand continues to weigh on the world’s second-largest economy.

Read the full market commentary on canadalifeinvest.ca, including the following topics:

• Canada’s capital gains inclusion rate increases
• Expectations increase for a BoC summer rate cut
• U.S. economic growth showing signs of slowing
• Drop in trade shows shakiness of China’s economy

Follow Canada Life Investment Management on LinkedIn to stay up to date with insights from global investment managers and timely market updates.

Canada Life and design, and Canada Life Investment Management and design are trademarks of The Canada Life Assurance Company. 

This commentary represents Canada Life Investment Management Ltd.'s views at the date of publication, which are subject to change without notice. Furthermore, there can be no assurance that any trends described in this material will continue or that forecasts will occur; economic and market conditions change frequently. This commentary is intended as a general source of information and is not intended to be a solicitation to buy or sell specific investments, nor tax or legal advice. Before making any investment decision, prospective investors should carefully review the relevant offering documents and seek input from their advisor. You may not reproduce, distribute, or otherwise use any of this article without the prior written consent of Canada Life Investment Management Ltd. Privacy, legal, copyright and trademark information

FTSE Disclaimer | S&P Disclaimer | MSCI Disclaimer