International Monetary Fund’s predictions for Canada and the U.S. for 2008
moneyrelations :: Oct.22.2007
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Poor earnings reports and Black Monday anniversary flashbacks contributed to a 366.94 point drop from the Dow Jones industrial average Friday, which spilled over to a 330.37 point loss from the TSX. This echoed the International Monetary Fund’s outlook which downgraded Canada’s expected growth for 2008 from 2.8 to 2.3 percent due to the influence of our credit challenged American neighbors. The news was worse for the U.S., as its expected growth forecast dropped from 2.8 to 1.9 percent. The Reuters article on the World Economic Outlook for Canada and the U.S. can be read here.
That being said, Canadians know the resilience of our southern neighbors and although things look bleak, maybe they are able to stave off a recession. According to an article by CNN, investors aren’t scared off yet, even after a tumultuous third quarter. And as reported by the Montreal Gazette, it was reasoned that Canada might not slump with the U.S. should the dire predictions ring true. The Canadian economy is not as dependent on the U.S. as it once was. We are a nation of commodities and we have buyers in the Chinese and the Indians with our Petrodollar. On a macro economics level, it’s the same story: it’s always good to have your supply in demand.
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