Sunday, July 18, 2010

Why Canada Did Better

On the jobs front,Canada has clearly outperformed,says Andrew Pyle of full service financial firm Scotia McLeod.Canada's growth of over 2% is reflecting domestic demand.Commodities are a much bigger share of Canada's exports,but there's been a slight shift to domestic spending from commodities,which has been helpful in the past six months.He thinks Canada will get an interest rate hike before the end of the quarter.
The financial landscape in Canada was a lot firmer before the recession,Mr.Pyle indicates.Consumers there weren't hit by housing,so their wealth wasn't so impacted.Nonetheless,the direction of Canada's economy and the Canadian dollar,the Loonie, are tied to the U.S.,Canada's largest trading partner.If the U.S. takes a double dip,it won't be good for the Canadian economy,the financial planner noted.
Scotia McLeod is a division of Scotiabank.Founded in 1921,it serves clients through a number of branches,including the National Branch in Toronto.
Bank of Nova Scotia(BNS)

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