December 13, 2010
Canadian Economic Outlook May Be Brighter
Did you know the big economic picture in Canada may be brighter than most realize? David Rosenberg of the Globe & Mail credits our central bank and our federal government. He says the bank was correct in hiking interest rates early to defuse a housing bubble in Canada. So far, it looks like it has let the air out of the balloon slowly without having to burst it. Canadian employment and real economic activity have reached all-time highs. Business investment in machinery and equipment surged in Q3, following strong gains in Q1 and Q2, laying the groundwork for future productivity gains. And the fact that Ottawa did not blow a hole in our fiscal situation means that declining corporate tax rates can help nurture an investment-led revival in the economy. According to Rosenberg, all of this is good news for the long-term outlook for the Canadian economy.
