The recession in Canada was mainly externally driven, the result of a high degree of openness, in particular heavy exposure to the US housing and auto sectors and to commodity prices, which declined quite sharply during the global downturn. Thanks to multiple initial strengths, such as a sounder banking system, a less leveraged corporate sector and a relatively strong fiscal position, the economy weathered the world-wide financial turmoil and the ensuing recession relatively well. The monetary and fiscal authorities coordinated their actions to help stabilise financial markets.