Canada – The Canadian Economy shrank 0.3% in October, raising fears that economic trouble is mounting in our country.
Manufacturing is down 2% year-over-year, the goods producing sector is down 1.3%.
The loonie is down against the US Dollar, and some analysts expect it to decline to 65 cents to the dollar in 2017.
This is a big concern, especially given the new Trump administration.
Trump’s policies will strengthen the lure of investment in America. Lower business taxes – which could fall below the combined Canadian rate and reduced regulations will draw more investment.
That goes alongside the competitive advantage of having no carbon tax while Canada imposes one.
All of this gives America a leg up in North American economic competition, leaving Canada in a perilous spot.
While Canada could benefit from increased growth in America, keep in mind that the Trump administration is considering the imposition of a 5% or 10% import tariff.
We could end up having a weak dollar, declining economy, and uncompetitive environment.
This shows why Canada has to reevaluate our economic strategy. We cannot impose more taxes and costs on our people and our Canadian businesses. We need to recognize that we are facing tough competition, and we must be ready to win that economic fight.