Cheap oil and gas … it’s good news for your wallet, but bad news for the economy, according to experts.
Analyst Dan McTeague with Gas Buddy dot com says the cost of falling prices can already be seen as corporations like Suncor and Shell Canada announced thousands of layoffs.
He says financial troubles won’t be confined to the oil patch, either.
“Not a good story, and it doesn’t end here,” he says. “I think we’re just at the beginning of what will be a lot of bad news in succession over the next several months.”
McTeague says you’ll start to notice that cheaper fuel leads to a weakening Canadian dollar, which leads to more expensive imports, such as food.
He also notes that employment could also drop between 0.5% to 2%.
“A quarter or half-percent GDP removing economic activity in Canada will have impacts in other areas of the economy, threatening the livelihood we have, currently,” he says.
McTeague says a recession is looming and predicts gas prices in Prince George to fall even farther.
Gas Buddy reports stations across the city have the cheapest gas in the province, by far.
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