Canadian election: same old, same old
(Kitco News) - After a month of campaigning, nothing much has changed within Canada's political system as the Liberal Party of Canada is expected to form another minority government.
According to media reports, although votes are still being counted, the Liberals are leading or elected in 158 ridings, short of the 170 seats needed to form a majority government. The Conservative Party of Canada is in control of 119 seats. The Bloc Quebecois has 34 seats, with the New Democratic Party at 25 seats and the Green Party holding two seats.
"Each party gained or lost no more than two seats from their pre-election position," said Avery Shenfeld, senior economist at CIBC. "It's out with the old parliament, in with the old parliament,"
Shenfeld added that the outcome is not expected to have any impact on financial markets or economic growth prospects.
Stephen Brown, senior Canada economist at Capital Economics, said that with the minority government still in place, they expect to see the continuation of loose fiscal policies to support economic growth.
"Liberals will press on with the plans laid out in their election platform, which point to an increase in spending of $80bn over the coming five years, partially offset by an increase in revenues of $25bn," Brown said.
With the election all but over, the Mining Association of Canada (MAC) said that they look forward to working with the federal government to make Canada a global leader in the commodity sector.
The MAC noted that Canada has one of the cleanest electricity grids on the planet, with 82% of generation coming from non-GHG emitting sources. The association also noted that Canada produces some of the lowest carbon intensity mineral and metal products anywhere in the world.
"The question is not whether we require minerals and metals to reach our climate goals, but rather if Canada will become the supplier the world needs," said Pierre Gratton, President and CEO of MAC, in a press release. "Mining is one of the most economically significant sectors in Canada and contributes $107 billion to the country's total nominal GDP and accounts for 19% of the value of Canadian goods exported. Canada's mining industry is well placed to provide the materials, specifically critical minerals, essential to healthcare, communications and low carbon technologies and our sector would benefit from strategic government supports to ensure we are able to seize the opportunity before us."