Canada's Rail Stoppage Threatens to Cripple Economy: Experts Weigh In

Economists warn that Canada's economy could face significant disruption if the rail stoppage initiated on Thursday drags on. The stoppage by Canadian National Railway and Canadian Pacific Kansas City, following failed labor negotiations, could result in billions in lost GDP and rising unemployment. However, a short-lived strike would have a minimal impact.

Canada's economy is at risk of shrinking by billions of dollars if a rail stoppage that began on Thursday extends for several weeks, economists and analysts have warned. The disruptions could also increase unemployment and consumer prices.

The economic fallout would be minimal if the stoppage lasts less than a week. Canada's largest freight rail operators, Canadian National Railway and Canadian Pacific Kansas City, locked out workers from the Teamsters union after unsuccessful labor negotiations.

Pedro Antunes, chief economist at the Conference Board of Canada, stated: "If you have a stoppage that is extended, that drags out, that could be really devastating." He estimated a two-week strike could result in a $3-billion GDP loss, and a four-week strike could lower GDP by nearly $10 billion in 2024, along with 49,000 job losses.

(With inputs from agencies.)