Positive Changes In The Current Canadian Economic and Financial Situation
To streamline and minimize blog maintenance, I will be discontinuing maintaining the Canadapersonalfinancewebsite.com website (however, I will still hold the domain). I will gradually move all articles from this site to A Dawn Journal. This article originally published on the above website on Feb 11, 2010
The Canadian financial events and news is based upon the analysis of a positive change in the current economic and financial situation in Canada. The seventh largest world economy and it is abundant with material wealth and a high-tech industrial society that belongs to the trillion -dollar class. The Canadian financial state and economy is based upon the foreign trade which is for about 2.7 percent of the Gross Domestic Product (GDP). Canada experienced its sixteenth consecutive year with solid domestic growth product, which is dependant largely upon the natural resources, skilled labour force and modern capital industries. The prudent fiscal management has produced consecutive balanced budgets from 1997 till now.
The global recession caused slackness in the labour market and also has cost Canada some 400,000 jobs. The plunge in the stock market temporarily compounded the thriving community to delay their retirement plans. But the unemployment rate growth and the number of workers available for skilled trades and some occupation dropped. The recession has only provided a temporary stay from the tense labour market of 2007 and 2008 although; the executive action briefing has provided with a statement the labour supply is now plentiful in many industries. The present and forthcoming skill shortages are embedded with the immigration policy and practice, as well as for the use of contract and fleeting workers. In this widespread scarcity, the progressional plans hold the paramount importance throughout the organizations. The strong employment rate remains the same with 380,000 new jobs and the unemployment rate has continued to stay at an average rate of 6.0% this year which is a record low rate.
Canada is in the list of G7 countries, in surplus from 2007 to 2009 as the expectations of the OECD remains. The international trade performances remains stable during the past challenging economic recession. An almost 60% increase in the value of dollar had been observed as compared to the US dollar since 2002. The Canadian dollar is expected to be just average under US $0.96 in 2010. As for a comparison in the past few years, the United States economy as compared to Canadian financial state and economy weakened and the demand of importing Canadian goods has been affected. The export of goods and services increased by 1.9 % in 2007 when it reached by $533 billion dollars and this has improved the Canadian financial state and economy. And the imports also went by an increase of 3.2 % to $503 billion dollars to support the Canadian financial state and economy.
If the Canadian financial experts and economists bring down the rates of finances, the consumer confidence will be raised higher, it shall encourage the consumer to loosen the strings around his purse. It has been speculated that the Bank of Canada may refrain from pushing up high interest rates until mid-year. The all items consumer price index is also moving from deflation to inflation since the retail gasoline prices have been rebounded. As it has been predicted that there will be an over all global recovery of the economic recession the second of 2010, downsizing and capitalization will improve. Over the past three years, the budget surpluses have allowed the government to begin pay down of the national debt of Canada. This also has given the chance to spend more on federal programs and reduce taxes, to the government. The national debt have come to the reduced figure of 19 billion Canadian dollars.