This month came with more encouraging news, tempered by a cautious air of concern. Canada has officially emerged from the recession and the housing market is hot. A survey showed the sentiment of senior accounting executives on the economy rose sharply in the third quarter. However, consumers remain cautious amid concerns over employment and the strong Loonie.
Due to a stronger currency, Canadians have been able to more easily afford luxury imports, vacations, or properties abroad – the National Hockey League has even benefited. The strong Loonie helped spur the highest operating profits for several Canadian NHL teams in more than a decade. One team’s president said, “There are always two absolutes: Winning is good, and it’s always better when the Canadian dollar is stronger.”
The Bank of Canada has not indicated any intention to discontinue its conditional commitment to hold key interest rates steady until the end of the second quarter of 2010. However, there is concern that the low interest rates could potentially spur financial bubbles.
Canada, like most other countries emerging from a recession, is seeing several positive signs, but should expect recovery to come in small steps. This is especially true as Canada depends on strong demand from other countries to import its goods.