How War Has Affected The Canadian Economy?

By PrestoCash

On February 24, 2022, the Russian army made its first attack on Ukraine. In the quest to gain control over Ukraine, the war can be expected to last much longer. Even if the war is in the other corner of the world, Canada can still feel its impact. 

Canadian farmers have started seeing a surge in fuel and fertilizer prices. Many farmers who lack funds depend on online lenders to get fast e-transfer loans in Canada to meet sudden surges. However, these can have a prolonged effect on them.

Canada’s prime minister, Justin Trudeau, has announced a ban on oil imports from Russia due to their continuous invasion of the Ukrainian territory. 

Unlike European Union, Canada is not heavily dependent on Russia for fuel imports. However, a 20 to 30% surge in fuel prices is expected in the near future. 

Source: Global Petrol Prices

How will the Canadian economy be affected by war?

According to CIBC World Markets deputy chief economist Benjamin Tal, Canada will see far fewer problems than other major economies of the world. 

That means the war happening right now may not have any prolonged effect on the Canadian economy. However, there might be a high chance of the economy witnessing inflation.

How will global commodities prices be affected?

Russia is the 3rd largest oil producer in the world, producing over 10.50 million barrels per day, making 11% of the total global oil supply. However, with the recent happenings, the Russian exports have been stopped, and many countries such as Canada and US have banned the import of oils from Russia. 

Source: EIA

This implies a rise in demand for fuel in the global market and surges in fuel charges. Falling back to the basic economy, higher demand and lower supply always rise the prices. 

Talking about the fuel and oil, the reduced export of fuel from the docks of Russia impact the global commodities market and causes the fuel prices to rise in various economies of the world.

How is the Canadian share market affected by war?

Canada is geographically much closer to Russia. As a result, the Russo-Ukrainian war has created a lot of adversities in the market. You may have noticed the market is highly volatile and reacts to every incident happening from both sides. 

War is never good for the finances of economies. Moreover, it affects the global economy. The MNCs working in countries that are highly affected by war have witnessed a loss in their share value. And it can take some time to recover from such losses.

What’s the next step for investors?

Personal finance is something that every person has to keep in check no matter the adversities or problems that may be happening in the world. So, an ideal step would be to set up your watch list with top companies and invest in them (do your own research before investing). 

Wrap up

Often, a difficult situation may arise, which may demand immediate financial requirements. In such times, online lenders are a great source to get fast e transfer loans in Canada. As private investors fund these lenders, you won’t face difficulty getting a loan with them.