Europe Influencing Canada?

StumbleUpon 0 Like 0 Retweet 0 Google +1 0

By Elli Davis, June 9, 2010

Europe by Niccolo Caranti

Europe’s debt crisis may have quite a significant impact on the Canadian economy! As our Finance Minister Jim Flaherty claims, Canada certainly is not an island and could very well be affected by the situation in Europe.

Mark Carney, the governor of the Bank of Canada, however, believes that the crisis in Europe could remain solely in Europe. As it has not majorly affected the situation in Canada yet, he declared he trusts in the European Central Bank's actions to hold the crisis there. The overall situation depends, he said, “on the ability of the central banks and governments to co-operate and act decisively.”

Both Flaherty and Carney agreed that China is going to become more and more important in the future and not just for Canada. Carney stated that the growth in China is going to “make an enormous difference to Canada”, as the country exports to Asia a lot. What do you think? It would be really bad news if, after the end of one crisis with a pretty successful recovery, another crisis arrived.