Emanuella Enenajor, Canada and U.S. economist at Bank of America Merrill Lynch, has some bad news for the Canadian economy.
In light of the collapse in oil prices, she says, Canada is relying on a resurgent U.S. economy in order to provide a boost to exports and spur investment in activities that aren’t related to commodities.
Lofty oil prices have helped foster investment and employment growth in Canada as well as domestic consumption by making imports less expensive. For that reason, the Canadian dollar is often referred to as the petro-loonie since the key role oil plays in the nation’s terms of trade is typically reflected in currency fluctuations. With the price of oil falling recently, the pressure is on for Canada and it doesn’t look like the country will be getting much help from its Southern neighbor.
Notwithstanding the fact that economic activity in the U.S. has routinely disappointed so far this year, Enenajor concludes that a pick-up in U.S. growth wouldn’t be a panacea for Canada.
Read it all.
(Bloomberg) The Canadian Economy Might Not Be Able To Ride America's Coat Tails This Time
Emanuella Enenajor, Canada and U.S. economist at Bank of America Merrill Lynch, has some bad news for the Canadian economy.
In light of the collapse in oil prices, she says, Canada is relying on a resurgent U.S. economy in order to provide a boost to exports and spur investment in activities that aren’t related to commodities.
Lofty oil prices have helped foster investment and employment growth in Canada as well as domestic consumption by making imports less expensive. For that reason, the Canadian dollar is often referred to as the petro-loonie since the key role oil plays in the nation’s terms of trade is typically reflected in currency fluctuations. With the price of oil falling recently, the pressure is on for Canada and it doesn’t look like the country will be getting much help from its Southern neighbor.
Notwithstanding the fact that economic activity in the U.S. has routinely disappointed so far this year, Enenajor concludes that a pick-up in U.S. growth wouldn’t be a panacea for Canada.
Read it all.