TORONTO — A CIBC senior economist says Canadians who want to help the country’s economy rebound should book haircuts, hire tradespeople for home renovations and keep ordering from local restaurants.
Royce Mendes says these actions are more likely to stimulate Canada’s economy and keep money within the country than online impulse shopping.
Throughout the COVID-19 pandemic, Mendes says purchases have leaned heavily towards consumer goods instead of services and that’s costing the economy.
He says money is less likely to leak out of Canada if it is spent at a local restaurant or on a service than if it is directed towards similarly-priced goods.
Services stimulate a rebound because the people who offer them are more likely to take the money they earn and spend it within the domestic economy again.
Mendes says he doesn’t think it will be hard to get Canadians to spend now that lockdowns are lifting and jobs are returning, but he says if people allocate their cash domestically they can trigger an even faster rebound.
This report by The Canadian Press was first published March 12, 2021
