Chief economist says Canada needs its own oil and gas and pipelines for long-term economic health

As a chief economist, Pierre Cleroux believes in infrastructure for energy.

And that means pipelines.

"We should be making it easier for all Canadians to share our oil and gas resources," said Cleroux, who is visiting Kelowna and Penticton this week.

"We need infrastructure, and that includes pipelines," said the chief economist for the Crown corporation Business Development Bank of Canada (BDC).

"We should be reducing trade barriers inside Canada so we can trade with each other inside the country and reduce our reliance on the US. Canada needs to diversify."

While in the Okanagan, Cleroux met with economic development officers at the BC Economic Summit in Penticton, with bank clients at a reception in Kelowna and was the guest speaker at a Kelowna Chamber of Commerce luncheon.

Cleroux's comments come at a time when new Prime Minister Mark Carney seems to be coming around to the idea of a pipeline and more oil and gas development for domestic use and export.

During the election campaign the Liberal prime minister talked about making Canada an "energy superpower" in both clean and conventional energy without providing many details.

Since the election, Carey has said he supports building a pipeline if there is consensus for one.

A pipeline is generally believed to be the best way to get Canada's biggest resource to both domestic markets and the coast for exporting.

It would reduce our reliance on the US and bring Canada more prosperity.

And that brought Cleroux to another of his main points.

"Tariffs and trade with the US is definitely the biggest issue for Canadian business and Canadians right now," he said.

"Tariffs are having a big impact on the Canadian aluminium and steel, car and lumber industries. But, the biggest impact is the uncertainty surrounding tariffs seeping into business and consumer confidence."

Cleroux's and the bank's forecast for the Canadian economy this year is to slow down to 0.8% growth.

"That's modest and it's not a recession," he said.

"The forecast for BC is a little better at 1.1% growth in 2025, which is, again, modest, but better because BC is not as impacted by tariffs as the two biggest provinces of Ontario and Quebec are."

Surveys commissioned by the Business Development Bank of Canada show business confidence eroding with only 42% of companies planning to invest in their own growth and expansion currently, compared to 51% in October 2024.

Consumers are also being cautious with 45% saying they'll spend less in 2025 compared to 2024.

Home sales across the country are also slowing as people are careful with their money and shying away from big purchases.

The housing market could warm up if there are further mortgage interest rate cuts.

"The fundamentals in the economy are good," stressed Cleroux.

"We have low inflation and interest rates are down from 5% last summer to 2.75% now. Yes, there's uncertainty around tariffs, but people still have jobs and that's why I'm predicting things will get better."

The Crown corporation Business Development Bank of Canada helps entrepreneurs and companies across the country with financing and consulting.