Economists weigh in on the impact of prolonged bridge blockades

Protests on the Ambassador Bridge that connects Windsor, Ont. to Detroit is leaving economists speculating about the potential impact on economic growth, with many saying the size of the impact depends on how long the blockade lasts.

Protests on the Ambassador Bridge that connects Windsor, Ont. to Detroit is leaving economists speculating about the potential impact on economic growth, with many saying the size of the impact depends on how long the blockade lasts.

With a global supply chain that’s already suffering from bottlenecks and the potential to put further upward pressure on inflation, the blockades, which originated in downtown Ottawa last week, are adding another layer of uncertainty to economic forecasts as Canada begins to emerge from the pandemic.

During a media availability on Wednesday, Tiff Macklem, governor of the Bank of Canada, said the blockages could have “a measurable impact on economic activity in Canada” if the disruption is not resolved soon.

Here’s what three Canadian economists have to say about it.

Avery Shenfeld, chief economist, CIBC Capital Markets

“The sheer scale of trade that crosses between Windsor and Detroit makes it unlikely that Canadian police and governments will be as tolerant of an extended disruption at the border as they have been about the protest in Ottawa, although even that situation has dealt an economic cost to the city. Production delayed for a few days due to the border closure could be offset by catch-up activity later, but that [particular] crossing has limited capacity, and we would lose economic activity outright if this situation is allowed to fester.”