BOC Macklem speaking
- Economic recovery from pandemic is at a very difficult stage
- In the near term, rising Covid infections will dampen growth and could even deepen are economic hole
- C$ appreciation is hurting competitiveness of Canadian exporters in the US market
- Canada must boost exports, productivity and business investment to ensure a sustainable recovery
- Canadian exports and business investment could bounce back more quickly than they did after global financial crisis
- Initial shutdowns last spring, trade has bounced back faster than many economists predicted
- Recent positive news on vaccines provide some reassurance that more normal activities can resume sometime later in 2021
- Disproportionate impact of the pandemic on trade and services has a significant implications for Canada
- Rapid rebound in goods exports is certainly encouraging
- We need to develop new fast-growing markets for our products and new fast-growing products for our markets
- Incoming US administration means Canadian schools and companies may have to fight harder to attract and retain talent
The C$ moved to another new multi-year high (going back to April 2018) vs. the USD today. The USDCAD trades just below the 1.2700 level (the low reached 1.26923).
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- New Covid restrictions will reduce growth, economy could even slide backwards
- this 2nd wave of Covid infection is certainly going to put a shop in the recovery
- arrival of vaccines is tremendously positive, we are going to get out of this
