If America wants to learn something about economic prosperity, they might find it by looking to the north. The LA Times featured this interesting piece about the lessons the United States could learn from Canada on the economic front. The United States is still recovering from economic collapse, but the effects of 2008′s market meltdown on Canada have been much milder in comparison.
According to the story, Canada has recovered most of its job losses, has less government debt than the U.S. and far less consumer debt. The story argues that fiscal responsibility was basically the key to Canada’s success. Pre-economic collapse, Canada’s banks made smaller loans, very few of them subprime. Canada’s consumers generally borrowed less. In the final quarter of last year, Canada’s GDP surged nearly 5%, while growth in the U.S. has slowed.
Forex analysts say that the Canadian dollar will only get stronger due to domestic economic strength. Canada is one of only three central banks around the world raising interest rates at this point and had very solid employment numbers for June, all of which bodes well for the loonie.
Tags: Canada, Canadian dollar, economy
