Personal Finance Changes Set for 2025

Starting in 2025, Canadians can expect some notable amendments in personal finance, particularly regarding taxation. The federal government is contemplating raising the capital-gains inclusion rate, though the proposal has yet to materialize into law amid ongoing political discord in Parliament. The Canada Revenue Agency (CRA) encourages Canadians to prepare their tax returns in light of these impending changes. Furthermore, all tax brackets will undergo a 2.7% increase to align with inflation, following a steeper 4.7% rise the previous year. Those looking for more detailed financial implications can stay updated on additional legislative changes that are set to take effect.

Temporary Foreign Worker’s Struggles in Canada

In a moving account, Hichem Nasri, a 29-year-old who came to Canada from Tunisia, reveals his tumultuous experience as a temporary foreign worker over the past 14 months. Hichem faced systemic racism and financial hardship across multiple jobs, including positions at a bank and a Canadian Tire store. He highlighted the prevalent issues of delayed pay and inadequate workplace treatment, describing his year in Canada as a frustrating ordeal. His situation underscores the ongoing challenges that many temporary foreign workers face, raising vital questions about labor rights and the need for reform in the immigration system.

Canada’s Manufacturing Sector Shows Unexpected Resilience

In an encouraging twist, Canada’s manufacturing sector has shown promising growth, expanding in December at its fastest rate in nearly two years, according to the S&P Global Canada Manufacturing Purchasing Managers’ Index (PMI). This growth is noteworthy as manufacturing activity is contracting in many other regions, including the United States and other parts of the world. Analysts suggest that U.S. businesses are preemptively stockpiling inventories ahead of potential tariffs from the incoming Trump administration, which could see a 25% tax on imports from Canada. This surge in manufacturing could signal a crucial turning point for the Canadian economy.

U.S. Banks Withdrawal from Climate Alliance Signals Change Ahead

In a dramatic shift, several major U.S. banks have pulled out of the Net-Zero Banking Alliance, a group aimed at combating climate change, as the nation prepares for the return of a Trump-led administration. Institutions like Morgan Stanley, Bank of America, and Citigroup have opted out amid growing criticism of Environmental, Social, and Governance (ESG) investments. This withdrawal highlights a broader pushback against climate initiatives from Republican lawmakers, suggesting a potential change in financial priorities that could affect how banks approach sustainability in the future.

The Real Impact of Generative AI Two Years In

It has been over two years since the launch of ChatGPT, and businesses are now evaluating how generative AI technologies have transformed operations. As companies explore various applications such as coding assistance, customer service enhancements, and legal research, many encounters with AI reveal a mixed bag of results, with straightforward tasks yielding the most benefits. This reflection on AI’s role highlights both the promise and challenges of integrating emerging technologies into everyday business operations.

Economic Forecast: Weakening Canadian Dollar and Rising Interest Rates in 2025

Looking ahead, there are looming signs of concern for Canada’s economy as interest rates are predicted to rise, coupled with expectations of a weaker Canadian dollar. The Federal Reserve's recent stance indicates a cautious approach to interest rate reduction, with forecasts suggesting prolonged inflation. Economic analyst John Rapley warns that such policy differences, particularly in relation to Trump's tariffs, could complicate financial landscapes in Canada, impacting government bonds and the broader economic stability.