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Trucker Protests Threaten Canada With Inflation, Negative Growth

  • Bridge blockade costing nation as much as C$500 million a day
  • Supply snarls seen driving consumer prices even higher
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WATCH: Canada’s capital of Ottawa is in its second week under siege from truckers and other activists demanding Covid-19 restrictions be removed. Source: Bloomberg

Escalating blockades of key border crossings could lead to a contraction of Canada’s economy in the first quarter and the new supply snarls have the potential to fuel inflation, economists say.

Growth was already poised to slow sharply at the start of 2022 after the nation was hit with lockdowns meant to contain the omicron variant of Covid-19. Now, disruptions to commercial traffic -- potentially costing the Canada’s economy as much as C$500 million ($395 million) daily -- could put the recovery in reverse.