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Canadian dollar

Every other week, we release 5 Minutes for Business, a publication written by Hendrik Brakel, our Senior Director of Economic, Financial and Tax Policy. In these publications, Hendrik briefly describes current issues that affect the Canadian economy and provides insight on what it will mean for Canadians today and the future. In this week’s edition, he looks at the state of the dollar – will it rise from the dead like the Revenant, or sink like the Titanic?

The dollar had a good week, up at 74 cents, thanks to some positive GDP news. That 0.8% annualized growth was a delightful surprise, particularly so many economists had predicted stagnant growth.

One of the reasons is that Canadians are substituting domestic goods and services in lieu of importing, which indicates more economic activity in Canada, a side effect of the dollar’s fall from 90 cents to 70. But this is hardly the sign of a resurgent economy. So the big question is: will it last as long as Leo’s Oscar snub, or be as short as an Academy Award Thank-you speech?

Read 5 Minutes for Business to find out.

For more information, please contact Hendrik Brakel.

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