If we take into consideration current events in economics, the most important is the fall in oil prices. What does it mean for the Canadian economy? Here are a few things happening.
(1) Weakening of the Canadian Dollar – Since the fall in oil prices, the Canadian Dollar has lost most against the USD. This is not good for the economy as the oil prices may take up to five years to reach the $100 level.
(2) Slower economic growth – With the Canadian dollar going down the economy growth is also going to suffer. With Canada involved in oil sands project, it is losing millions of dollars daily. Not good at all for Canada.
(3) Cut in the service industry – Just like other developed nations Canada’s economy is based on service industry. However current events in economics in Canada has led to the consumer having less disposable income. This means that the income will be spent more on necessities. This is bad news for Canada. Finance minister Bill Morneau is facing the crisis of his political career of ensuring the coming budget helps stabilize the economy.