Canada's recovery from the pandemic is at a very difficult stage and a second wave of COVID-19 infections "could even deepen the economic hole", Bank of Canada Governor Tiff Macklem said on Tuesday.
Reuters reports
Macklem told the Greater Vancouver Board of Trade that Canada had to boost both exports and productivity to ensure the recovery from the coronavirus pandemic was sustainable.
"The economic recovery from the pandemic is at a very difficult stage. Near term, rising COVID-19 infections will dampen growth and could even deepen our economic hole," he said.
"Uncertainty is elevated, and the recovery is going to be long and choppy."
Key notes
Macklem says economic recovery from the pandemic is at a very difficult stage.
Macklem: In the near-term, rising covid-19 infections will dampen growth and "could even deepen our economic hole".
Macklem: Recent c$ appreciation is hurting competitiveness of Canadian exporters in US market.
Macklem: Canada must boost exports, productivity and business investment to ensure a sustainable recovery.
Macklem: Canadian exports and business investment could bounce back more quickly than they did after the global financial crisis.
Macklem: Since initial shutdowns last spring, trade has bounced back faster than many economists predicted.
Macklem: Recent positive news on vaccines provides some reassurance that more normal activities can resume sometime later in 2021.
Macklem: Disproportionate impact of the pandemic on trade in services has significant implications for Canada.
Macklem: Rapid rebound in goods exports is certainly encouraging.
Macklem: We need to develop new fast-growing markets for our products and new fast-growing products for our markets.
Macklem: Low rates and vaccine roll-out means this is a good time for firms to look at how they judge the rate of return on potential investment.
Macklem: Incoming US administration means Canadian schools and companies may have to fight harder to attract and retain talent.
USD/CAD update
USD/CAD dives to fresh yearly lows under 1.2700 as stimulus hopes trigger risk-on
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD consolidates gains below 1.0500 amid weaker US Dollar
EUR/USD holds gains below 1.0500 in European trading on Monday, having recovered from its two-year low of 1.0332. This rebound is due to a sell-off in the US Dollar and the US Treasury bond yields amid a US bond market rally. The focus shifts to German data and ECB-speak.
GBP/USD flirts with 2600 on the road to recovery
GBP/USD is trading close to 1.2600 early Monday, opening with a bullish gap at the start of a new week. A broad US Dollar decline alongside the US Treasury bond yields on appointment of a fiscal hawk Scott Bessent as the Treasury Chief helped the pair stage a solid comeback.
Gold price sticks to heavy intraday losses amid risk-on mood, holds above $2,650 level
Gold price witnessed an intraday turnaround after touching a nearly three-week high, around the $2,721-2,722 area and snapped a five-day winning streak at the start of a new week. Bets for slower Fed rate cuts also drive flows away from the non-yielding yellow metal.
Bitcoin consolidates after a new all-time high of $99,500
Bitcoin remains strong above $97,700 after reaching a record high of $99,588. At the same time, Ethereum edges closer to breaking its weekly resistance, signaling potential gains. Ripple holds steady at a critical support level, hinting at continued upward momentum.
Eurozone PMI sounds the alarm about growth once more
The composite PMI dropped from 50 to 48.1, once more stressing growth concerns for the eurozone. Hard data has actually come in better than expected recently – so ahead of the December meeting, the ECB has to figure out whether this is the PMI crying wolf or whether it should take this signal seriously. We think it’s the latter.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.