TORONTO, ON February 22, 2016 – Despite the recovering economy of its southern neighbour and biggest trading partner, the forecast for Canada remains bleak, says Jill MacLeod, Regional Chair for Canada with Cornerstone International Group.
“The Canadian dollar started the year at a 30% discount to the USA dollar, weaker than it has been for a long time,” writes Macleod in a Business Outlook published on the group’s website.
“Domestic growth is slow and low global oil prices are punishing the energy sector which accounts for a quarter of the country’s GDP.”
The business outlook commentary is one of a global series published at the start of each year by Cornerstone International Group, a global executive search and leadership development organization.
Canada’s economy is also directly affected by what is happening in China, where a weaker appetite for resources is depressing prices for oil, coal, copper and many of the key commodities that dominate this country’s exports and investments.
A modest pickup in growth in 2016 is expected to stem from increased federal government spending, largely on infrastructure, promised by a new government elected in October 2015.
While effects of the economic downtown on Canadians cannot be downplayed, hiring remains steady, home values are up, gas prices are down and most people are working.
The manufacturing sector will begin 2016 much the way it began 2015 – with the expectation that it will be one of the bright spots in the Canadian economy, fueled by a weak Canadian dollar and a strong U.S. economy that should give a big boost to Canada’s non-energy exports.
Cornerstone International Group is an organization of executive search and leadership development specialists in 29 countries. Other regional and national business outlooks already published include Asia-Pacific, China, India, Hong Kong, Indonesia, Taiwan, Australia and New Zealand