Energy Sector Developments Taking Toll on Canadian Economy
By Nirmala Menon
Pipeline capacity constraints are taking a toll on the Canadian economy.
The Bank of Canada estimates that a combination of lower energy prices, temporary disruptions and “persistent transportation bottlenecks” slowed Canada’s annualized growth by 0.4 percentage points in the second half of last year.
Those disruptions and bottlenecks resulted in the spread between prices received by Canadian producers of heavy crude–the Western Canada Select–and North American benchmarks widening to record levels since October, the central bank said in a special, break-out article in its quarterly Monetary Policy Report.
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