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Canada’s Economy

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Given the recent changes in the economic climate in the USA, we have summarized some recent reports on the Canadian economy for the benefit of our readers.

The following has been extracted from the Opening Statement by David Dodge, Governor of the Bank of Canada, before the Standing Senate Committee on Banking, Trade and Commerce on 28 March 2001:

“In Canada, somewhat slower growth has been forecast for 2001, as the economy was beginning to press against capacity. The slowing is primarily in the automotive, telecommunications and electronic sectors, mostly due to fact that production rates were higher than US/Global demand in these sectors.

These three high profile sectors naturally attract a lot of attention. However, there is considerable strength in other important areas of the Canadian economy. The latest data show that investments in the energy sector are very strong, and retail sales are solid. In addition, activity in housing, non-residential construction, and most other service industries remains firm. The bank has decided to lower interest rates to provide some stimulus to industrial activity while maintaining a low rate of core inflation.

‘All in all, as we look ahead through this year and into 2002, the Bank remains positive about Canada’s economic prospects.'”

On April 6, 2001, The Globe and Mail reported on a poll of 1,003 adult Canadians, conducted between March 27 and 29:

Nearly 30% expect their personal finances to improve during this year, while only 19% are worried about losing their job (a figure near an all-time low reached last November).

72% felt that the economy will either improve or stay the same in coming year.

“I believe it’s going to be the best year ever,” proclaimed Nova MacIntosh, a 23-year-old customer service clerk. “And so do my friends. I don’t hear anyone griping or believe that the economy is slowing down any time soon.”