By: Rolf Li
The year 2015 started off poorly for the Canadian economy and the dollar alike. In the span between September and March, the Canadian dollar dropped over 10% from $0.95 US to $0.78. With oil price plummeting from $140 a barrel to just over $40, the future looked bleak for our oil-dependent culture and economy, but is there hope in the horizon?
New numbers by Stats Can show that there is a slowdown in the drop of the Canadian economy. In fact, the GDP did better than what was expected as many experts were predicting a 0.2% or 0.3% drop in Canadian wealth. What actually happened was a soft drop of 0.1%. The bottom of the barrel seems like an unlikely place to kickstart the backup generators of the Canadian economy, but with strong economic data coming coming out of the USA and some European countries, the economy can stay afloat for a while.
There are many reasons to be angry at the government right now, and it is completely understandable. If not for the recovering economy, I might not support our current government. There needs to be a change in the way we look at our economic prospects. Our leaders need to develop our manufacturing and not only our energy. If nothing is done in the coming term, Canada is in a whole new mess. However, in spite of this news, there is a turnaround in our numbers. The TSX is on a 52-week high in volume of trading and value of trading. That is accompanied by growth in the natural resources sector and a small change in energy prices.
Amid all of this recovery, there still are sore points in the economy. 6.8% of the population that has the potential to work is out of a job. Compare that to the 5.5% of the USA! There is an expected rise in unemployment figures in this country as new policy changes are taking effect and with oil still jumping up and down. There was a sharp drop, but is the economy seeing the light?Follow @zakopinion
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