(Gordon Isfeld – Financial Post)
The economic course of Canada and the United States could soon diverge as U.S. policy-makers are beginning to raise interest rates at the same time as borrowing levels in Canada stagnate or even decline. Canada’s once thriving oil-dependent cities are possibly slipping into recession.
Where once we were feeling smug, now we’re looking wistfully south and thinking, “Don’t leave us in the dust.”
Bank of Canada governor Stephen Poloz – previously the head of Export Development Canada, the federal lending agency – recently expressed his wariness of a quick rebound in the economy, which grew 2.5% in 2014 but is now forecast by the bank to increase by only 1.9% this year.
“The negative effects of lower oil prices hit the economy right away, and the various positives – more exports because of a stronger U.S. economy and a lower dollar, and more consumption spending as households spend less on fuel – will arrive only gradually, and are of uncertain size,” he said. Click here to read more.