Canadian Economic Review
The Canadian economy had a solid year in 2005 but not a spectacular one. The economy grew by 2.9 percent and by a more impressive 3.6 percent annualized rate in the fourth quarter. Fuelled by the world's largest deposits of oil-sand, the Western provinces, Alberta in particular, were the major contributors to the economic growth. Fiscally,
Canada remains on sound footing even though unemployment remains high by US standards. Below are some details:
GDP Growth:
2.9% in 2005 - Forecast 2006: 3.1%
Unemployment:
6.5% (Dec) - Forecast 2006: 7.0%
Trade Balance:
US$52.7 billion (Surplus)
Current Account Balance:
US$19.6 (Surplus)
Budget Surplus:
1.3% of GDP
Vehicle Production (Cars and Light Trucks):
2.69 million units in 2005 - Forecast 2006: 2.60 million
Exchange Rate:
US$1 = C$1.15 (Jan 2005) - C$1.23 (Jan 2004)
Flashpoints 2006:
The strengthening Canadian dollar is undermining the export volume and the fate of
Canada's most profitable steelmill, Dofasco. Will it be owned by a
Luxembourg company or by an Indian conglomerate with their corporate seat in the
Netherlands? Or perhaps
Germany?