MONEXgroup, 2015: “Congratulations to the Liberal party for winning a Majority Government in Canada. With the new leadership, we anticipate that Canadian merchants will experience growth and long-term infrastructure sustainability. MONEXgroup – the #1 Payment Processing Solution & Merchant Services – looks forward to continuing to deliver innovation, reliability and secure payment processing solutions to Canadian merchants throughout the ever-changing landscape.”
Reported by The Globe & Mail, the Liberals’ plan is to invest in transportation infrastructure to increase access for international markets in Canada. Such improvements are relevant to Canadian merchants and businesses of all sizes. To promote Canada’s competitiveness as a major market player in domestic and international business, the new plan will focus on enhancing growth opportunities for trade and commerce. “The Liberals have promised to reduce the small business tax rate to 9 per cent from 11 per cent” (The Globe & Mail, Oct: 2015). The reductions in business tax rates provides Canadian merchants with the potential to increase their spending levels and this will eventually impact the cyclical economy. Investments in infrastructure spending will increase future revenues with modernized transportation, communications and ease-of-payment facilities in commerce.
How can this spending improve the Canadian economy?
With strategic planning and implementation of infrastructure projects, the government efforts are to be considered as the foundation for expanding existing entities into large distribution channels, building the transportation system across the Canadian geographic landscape and re-investing into the environment, technology and innovation.
Is this infrastructure investment considered a strategic model for a better economy?
Given the economy’s need for Government support sooner than later, “implementation of the infrastructure project is the next big question”, discussed by The Globe & Mail this week. “The currency will more likely be affected by what the Bank of Canada and Federal Reserve say and do.” With the majority elected Liberals amassing 184 seats, the stability of the government is expected to help the loonie and rebalance the economic policy in Canada, said Sherry Cooper, Chief Economist for Dominion Lending Centres. “It is difficult to assess exact impacts at this early stage, but should the Liberal infrastructure spending materialize, the program could boost annual growth in 2016 and 2017 by up to 0.1 and 0.3 percentage points respectively”, Cooper explained.
How can the imminent infrastructure investment affect Canadian Merchants?
The potential for growth for Canadian merchants in manufacturing, transportation, distribution and retail industries should flourish with the projected fiscal stimulus and a positive monetary policy. According to the Bank of Canada, the monetary policy is positioned by conducting an analysis over the short-term interest rates adjustments, which will result in “achieving a rate of monetary expansion consistent with maintaining a low and relatively stable rate of inflation”.
Hence, the demand for goods and services are affected by the inflation rates, and the lower interest rates will raise equity prices or capital for investors. With lower interest rates, investors discount the future cash flows associated with equity investments at a lower rate. The minimal shift in interest rates will therefore influence the borrowing cost for properties, commercial development and national spending levels. Also, by keeping inflation low and stable, Canadian merchants should be encouraged when making investment and spending decisions “that stimulate non-inflationary growth in the economy”. This dynamic will further motivate longer-term investment in Canada’s economy nationwide and will contribute to job opportunities plus improved employment rates. For individuals, families and Canadian merchants, the overall objective is to improve the standard of living (Bank of Canada: Inflation-Control Target, 2015).
October 2015 Monetary Policy Report by the Bank of Canada Highlights Potential for Growth:
Global economic growth will show improvements in the years 2016 and 2017
The national GDP will constantly grow, projected at 2% in 2016 and 2.5% in 2017
The Canadian economy is expected to run at full capacity with inflation stability
What are the benefits of partnering with MONEXgroup POS Solutions for Canadian Merchants?
As a national merchant service provider with over 13 years of experience, MONEXgroup has partnered with businesses of all sizes and types and delivered diversified payment processing platforms to enhance their daily business operations. Through personalized support and uniqueness of products, MONEXgroup has emerged as a market leader in helping Canadian merchants in running their businesses. The benefits of partnership are not limited to accepting debit and credit cards, but to the security and reliability of service. Canadian merchants are offered with very competitive rates, top-notch payment solutions, latest technologies in the payments industry and a PCI compliant range of products.
When partnering with the number one payment processor in Canada; MONEXgroup will increase your efficiency and quality of service and lower the related costs. Request a Cost Comparison Analysis today.
Call: 1.866.767.7253 and ask about our latest promotion.
Sara Atie
MONEXgroup
Marketing Communications Specialist
satie@MONEXgroup.com
T: 1.866.286.7787 – EXT: 240
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