#productivity #economy #canada #usa #business In addition to the productivity crisis, which only worsened, Canada is now waging a full economic war with its neighbour to the south, the largest economic power in the world, the USA. Needless to say, Canada could have been in a much better position to face this challenge, but the time for shoring up the Canadian economy has passed.
What can be done, at the business level, to mitigate the impact of recession or stagflation extended by a tariff war? Increase competitivity, open new markets, re-explore older markets.
Below is the Journal de Montreal (in French) summary of the leading imports and exports. It is the most visually compelling. Canada has a substantial export surplus with the US, primarily due to oil & gas. The oil & gas Canada exports (mostly from Alberta) are discounted because Canada cannot export it elsewhere or consume it all within its borders. The US then refines and sells it at a premium, a lot of it in the form of gasoline, back to Canada! All sectors of the Canadian economy will be directly affected. Lower demand for the Canadian dollar will also weaken the Canadian dollar, further creating inflation and amplifying this spiral dive.
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