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Consumer purchasing power picks up in 1997. (Canada)(Frank Talk on the Economy)(Column)

Canadian Business Review

| September 22, 1996 | Frank, James G. | COPYRIGHT 1996 Conference Board of Canada. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan.  All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)Copyright

The coming year promises to bring as much uncertainty as we've seen in 1996, and the sources of that uncertainty will remain much the same. First, there is the prospect of rising U.S. interest rates and the question of the extent to which Canada will have to over-compensate for these increases. Second, there is the impact of huge numbers of unemployed people who are hoping for jobs. The third source of uncertainty is a political cycle in which we face a federal election along with possible further problems on the constitutional front.

However, along with the uncertainty there is some good news. Ontario consumers will see the first large part of a tax cut starting in ...

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