Slowing economy, real estate risk, and continued budget deficits among factors for downgrade.
Reuters is reporting that Dagong Global Credit Rating Co – one of China’s largest credit rating agencies – has downgraded Canada’s sovereign credit outlook to negative.
According to the report, Dagong made the decision “citing a slowdown in the Canadian economy and relatively high risks in its real estate market.”
Additionally, “A persistently high fiscal deficit was also one of the reasons for the downgrade.”
While a downgrade from one of the top US credit rating agencies would have more weight, the move by Dagong Global Credit Rating Co is a warning sign for our country, as confidence in a country’s credit often erodes slowly, and then all at once.
Another warning sign is the fact that billions of dollars in investment is fleeing Canada. While the government spouts talking points and pretends everything is going great, people are increasingly seeing Canada as a difficult place to invest in, especially with the US moving in a much more pro-prosperity direction.
It turns out that virtue-signalling, tax increases, and excessive bureaucratic regulations don’t help the economy grow, and the budget doesn’t balance itself. While the foolish politicians running the government may not be impacted by the damage they’re doing to our economy, more and more Canadians are feeling the negative consequences, and the world is starting to take notice.
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