As coronavirus spreads and oil prices plunge, Bill Morneau's budget challenge is becoming more complicated - 2020-03-09
OTTAWA—Already facing the economic fallout from the coronavirus outbreak and weeks of rail blockades, the federal Liberals must now factor in a global oil price war as they prepare their maiden minority budget.
Canadian markets were rocked Monday as oil prices collapsed, yanking the Toronto Stock Exchange and Alberta-based energy equities down with them. The precipitous drop triggered market-wide circuit breakers designed to impede panic on major North American exchanges and was caused, in part, by Saudi Arabia and Russia feuding over oil production levels.
But while Canada didn't create the problem, the country's dependence on natural resource industries means Ottawa will have to deal with it against wider market disquiet about the effects of the global coronavirus outbreak.