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(October 13, 2006) The Canadian economy will grow 2.7% next year, compared to 2.5% south of the border, according to RBC economics.

Canada has done fairly well over the past few years, RBC notes, despite an appreciating dollar and rising energy prices. “Growth in 2006 is expected to be only slightly slower, as consumer and business spending mitigates the drag coming from the trade sector,” the report states.

“Despite slower growth for the second quarter of 2006, Canada’s domestic economy actually grew at a robust 4% annual rate,” says RBC chief economist Craig Wright.

Canada’s trade sector has pulled down GDP growth over the past two years, the report adds, with import growth outpacing exports. RBC expects this trend to continue, as waning U.S. demand for products like motor vehicles and lumber weighs on exports.

As for the U.S., slower consumer spending and a cooling housing market are expected to moderate growth to about 2.5% in the second half of 2006 and into 2007.

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Manitoba’s disposable income declines

(October 13, 2006) Manitoba was the only province in Canada to record a drop in real disposable income in 2005, according to a report released Friday by the Chartered Accountants of Manitoba.

The rate dropped 1.3% in 2005 to $21,705 per capita, below the Canadian average of $24,099.

Income and population growth in Manitoba was modest in 2005. Those factors, combined with inflation and tax increases, dragged down the province’s disposable income, said Gary Hannaford, CEO of the Institute of Chartered Accountants of Manitoba.

“We now have the lowest disposable income from Ontario west but you do have to balance that against Manitoba having the lowest cost of living,” added Hannaford. “In our analysis of the province as a place to live, work, and invest, the live section is where some of Manitoba’s advantages come into play against poor performance in other indicators.”

Hannaford expects to see moderate gains in real per capita disposable income this year, as the GDP rises, along with employment. “When you combine those factors with the cuts to personal tax rates that the Manitoba government has made, we can reasonably expect to see a recovery in disposable income in 2006.”

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Western Financial announces pair of acquisitions

(October 13, 2006) Western Financial Group has purchased two insurance brokerages in southern Alberta — Claresholm-based Willow Creek Agencies and Thomsen Fisher in Medicine Hat.

Willow Creek provides home, auto, farm and small commercial insurance products and services to customers throughout the Claresholm trading area. “We are pleased to welcome Brian Smith and his team to the Western Financial Group family,” said Western Financial president Scott Tannas. “We expect Claresholm customers will be impressed with the additional depth and breadth of products that are now available through their local Western Financial Group office.”

Thomsen Fisher is one of the leading insurance brokers in southern Alberta, offering a wide range of services, including commercial and agri-business products. Western Financial already owns another Medicine Hat brokerage, Gateway Agencies.

“We are pleased to have Thomsen Fisher on board,” said Tannas. “They have a long and distinguished history in the community, and an excellent reputation in the insurance business in Alberta.</p.

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