Winners and losers across Canada as loonie takes a nosedive

CALGARY -- The loonie fell below the 70-cent U.S. mark Tuesday for the first time in 13 years. In its wake, the rapidly dropping dollar is leaving a roster of winners and losers in Canada.

See Full Article

Here's a look at who is benefiting -- and who is hurting:

Winner: The film industry. Hollywood North, whether it be Vancouver, Toronto, or some of the up-and-coming markets like Calgary, is booming. Peter Leitch, president of North Shore Studios and chairman of the Motion Picture Production Industry Association of B.C., says American studios are increasingly heading to Canada to take advantage of the low dollar.

"That does make Canada one of the top choices of places to come to," said Leitch. "A few years ago when it was at par, it was quite a challenge to attract business."

He said the boost to the film industry is helping fill some of the gaps from the resource sector.

"It's a great alternative when other parts of the economy are struggling. I mean, we're hiring people from the oil and gas industry to help rig some of our sets."

Loser: Snowbirds. Canadians planning their winter escape to the southern U.S. will be feeling the pinch as their money won't stretch as far. Travellers are likely to cut back their trips and spend less while enjoying the warmer climes.

Winner: The cattle industry. Canada exported about $1.5 billion in beef products to the U.S. last year. Brian Perillat, senior analyst at cattle market research outfit Canfax, says the high U.S. dollar has helped keep Canadian beef prices up even as the U.S. market has started to retreat.

"As the (Canadian) dollar goes down, it certainly helps our prices relative to the U.S.," said Perillat.

"Basically every time the loonie drops a cent, on average our calf prices go up about five cents a pound, holding all other things consistent."

Loser: Pro sports teams. If you think buying a pair of shoes in the U.S. hurts, try signing a multimillion-dollar contract with an NHL, NBA or Major League Baseball star.

Winner: Tourism. Canada's tourist hotspots are getting a boost from Americans heading north of the border as well as Canadians opting to take so-called staycations.

"We've got a lot of drive traffic coming across the border," said Sarah Morden, a spokeswoman for B.C. ski resort Whistler Blackcomb. "It's just kind of a no-brainer really. We're not that far from Washington state and we've got great snow and a low Canadian dollar."

The Conference Board of Canada says overnight travel from the U.S. increased about seven per cent last year and is expected to rise another 3.3 per cent this year.

Loser: Consumers. Be prepared to pay more for anything imported, including food. The University of Guelph's Food Institute estimates the average Canadian household spent an additional $325 on food in 2015 and is expected see an additional increase of about $345 this year because of the low dollar.

Winner: The mining sector. Vancouver mining company Teck Resources credits the low Canadian dollar for helping the company weather the downturn in commodity prices, with the company able to sell its copper and coal at U.S. prices while pay operating costs in Canadian.


Latest Economic News

  • Trans-Pacific Partnership trade deal doomed, ex-PM Brian Mulroney predicts

    Economic CBC News
    Former prime minister Brian Mulroney says the Trans-Pacific Partnership trade deal is doomed to fail because of hostility in the U.S. Congress. Mulroney made the prediction today after taking part in a ceremony to formally announce plans for the Brian Mulroney Institute of Government at his alma mater, St. Source
  • 'Muted' Canadian wage hikes seen next year: Conference Board

    Economic CBC News
    Canadian workers in non-union jobs can expect 'muted" wage hikes next year, with the lowest increases going to workers in Alberta and in the oil and gas industry, the Conference Board of Canada said Wednesday in a new report. Source
  • Apple struggling to keep up with demand for iPhone 7 Plus

    Economic CBC News
    Apple Inc's shares slipped as much as four per cent after the company said it was struggling to keep up with demand for its large-screen, higher-margin iPhone 7 Plus, potentially reducing sales and profits in the Christmas shopping period. Source
  • Global gender gap list puts Canada at 35th

    Economic CBC News
    Canada has come 35th — sandwiched between Luxembourg and Cape Verde — in the latest World Economic Forum annual report on gender-based disparities around the world. Iceland, Finland, Norway and Sweden are the top four countries on the WEF's Global Gender Gap index, which measures differences between men and women in economics, education, health and political empowerment among 144 countries. Source
  • New York's MoMA acquires original set of emojis

    Economic CTV News
    NEW YORK -- Back in the day, before cars could drive themselves and phones could send stickers and animations, a Japanese phone company released a set of 176 emojis. The year was 1999 and the tiny 12-by-12 pixel designs -- smiley faces, hearts of the intact and broken variety, cats, and so on -- were mainly popular in Japan. Source
  • Vale fined $1M after deadly rock-crusher incident in Sudbury

    Economic CTV News
    Vale Canada Limited has been fined $1 million after a worker at its plant near Sudbury, Ont. was killed and another was injured while trying to clear a jam in a rock-crushing machine. The mining company pleaded guilty to failing to ensure that gravity-stored energy was dissipated or contained while work was being done on the crusher, and to failing to provide information, instruction and supervision to a worker on a safe procedure to remove a broken piece of machinery from the crusher. Source
  • CMHC raises its overall risk rating for national housing market to strong

    Economic CTV News
    TORONTO - Canada's federal housing agency says there is rising evidence of risk in the country's real estate markets as home prices have climbed faster than income and population growth. Canada Mortgage and Housing Corp. Source
  • Red alert: Most Canadian housing markets overvalued, CMHC says

    Economic CBC News
    It's not just Toronto and Vancouver. Most of Canada's housing markets are currently overvalued, according to the latest quarterly market assessment from the Canada Mortgage and Housing Corporation (CMHC) . Saying it has found "strong evidence of problematic conditions," for the country as a whole, CMHC singled out nine of the country's 15 biggest housing markets as being particularly overvalued. Source
  • 'Go home,' indigenous leader tells protesters after Muskrat Falls meeting

    Economic CTV News
    ST. JOHN'S, N.L. -- Indigenous leaders and the Newfoundland and Labrador government are telling protesters at the site of the Muskrat Falls hydro project they can "go home." The leaders emerged from a marathon meeting with Premier Dwight Ball early Wednesday touting significant progress made to address environmental concerns with the Labrador megaproject. Source
  • Women won't earn as much as men for 170 years: report

    Economic CTV News
    GENEVA -- The global gap in earnings between men and women will not be closed for another 170 years if current trends continue, according to a new report from the World Economic Forum. The Switzerland-based forum's annual Global Gender Gap Report, released Tuesday, lists economics and health as the most challenging disparities between men and women worldwide. Source