OECD's 2012 survey of the Canadian economy examines recent economic developments, policies and prospects, and takes a special look at business innovation and tertiary education.
- 13 June 2012
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Canada weathered the global economic crisis well, mainly reflecting sustained growth in domestic pending, and the economy is continuing to grow despite the persistence of international turbulence, most recently stemming from the euro zone sovereign debt crisis. In Canada’s case, several factors are acting in its favour. Federal fiscal plans are seen by markets as credible, favouring low borrowing costs. The banking system is sound and required no taxpayer bailouts during the 2008-09 crisis. Comparatively strong growth among emerging market economies has shifted global purchasing power to commodity exporters like Canada via both higher export prices and stronger currencies. Nevertheless, uncertainty regarding the global situation and risk-averse financial markets are a drag on business confidence and investment, while prolonged low interest rates could push mortgage-debt and house prices higher from already elevated levels, at least in some large cities.