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What will the Donald Trump effect  be on the Canadian economy? It is difficult to say at the moment, but there are plenty of predictions. One thing for certain is that Trump’s 100-day action plan has an economic strategy designed to grow the American economy. The goal is to grow the U.S. economy by 4% per year to help create 25 million new jobs.

After having the United States Federal election, Canadian residents should be on the lookout for the Donald Trump effect on the economy. One thing to look out for is Trump’s plan to increase deficit spending on the United States infrastructure. This will create more construction jobs that will help boost growth and stimulate inflation.

Trump is looking to accomplish this by lifting the restrictions set by ex U.S. Presidents Obama and Clinton to allow energy infrastructure projects, like the Keystone Pipeline, to be constructed. These projects can create jobs through the production of $50 trillion dollars’ in American energy reserves, including shale, oil, natural gas and clean coal.

A move like this can affect the value of the Canadian dollar which will cause international investors to focus their attention on buying U.S. currency in hopes that Trump will boost the American economy. As a result, on Monday, November 14, 2016, the Canadian dollar fluctuated from 73.60 cents to 73.78 cents US by the end of the day.

It is important to keep track of political situation around the world, especially if they involve our next door neighbors. Trump’s plan to cut taxes and increase deficit spending will create a larger U.S. fiscal deficit and encourage the use of Treasury securities. With more money needed for the investment in the reconstruction of America, you can expect inflation to be a result.

Canadians are in a very delicate financial position at the moment, so any kind of negative reaction could have a significant effect. A credit report released by TransUnion, a Canadian credit bureau agency, stated that the average Canadian owes $21,686 in credit debt. This means that the average non-mortgage debt for Canadians went up 2.3% in the past year. Alberta is in the lead in non-mortgage debt levels with an average of $27,663, British Columbia is at $23,363, Quebec is at $17,969, and Ontario sits at $21,620.

We are Licensed Insolvency Trustees and have extensive experience in addressing financial issues and challenges as well as all the questions you may have, including managing credit. Feel free to email us at info@dodicklandau.ca, call us at 416 736 4357 (HELP), or fill out the contact form on this website, to book a free, no-obligation consultation with one of our debt solutions’ experts.

Make an appointment today, and we will provide some solutions specifically tailored to your situation. We look forward to assisting.