Many people are watching the stock markets and the price of oil and what it means for the provincial economy.
The stock market plunged yesterday, sparked by a fight between major crude producing countries.
The drop in oil prices will mean a loss of millions to the province.
Larry Short, a Senior Investment Advisor and Portfolio Manager with Short Financial, says there are other industries that could also take a hit due to COVID-19.
He says tourism could be impacted, as well as shipments of fish -which is 2 per cent of the economy- and the prices of Cobalt and mining. Short says overall we have a pretty rough period of time happening here; there is a cushion at least in the short run where we could borrow more, but at some point that borrowing will run out and that’s when cuts will have to be made.
Short says several factors have converged to create the current situation: @590VOCM @Fred_Hutton #nlpoli pic.twitter.com/naZuzB22b0
— Gerri Lynn Mackey (@GerriLynnMackey) March 10, 2020
