Future Prospects for the Canadian Economy Suggest More Asian Focus

ShanghaiGuest post by Forex Traders

The Great Recession, as it has been so named, has been extremely difficult for most countries with well-developed economies. Various recovery programs have failed to stimulate the domestic growth and hiring necessary to replace and exceed those jobs lost during the recent downturn. Australia seems to be the only outlier that was able to skirt the global recession, due primarily to its proximity to Asian markets and its export trade of raw materials to China’s fast-growing industrial complex.

Canada, however, has already outdistanced its other G7 brethren in newly gendered economic performance, including generating enough jobs to replace the 460,000 that were previously lost. To the South, the United States continues to stumble along, mired in political gridlock with tepid recovery results, still wondering when the nine million job lost figure will ever be diminished. Canada’s recovery is ongoing, and economic activity is well past pre-recession levels.

Canada’s recovery began in earnest in 2010, jumping ahead with 6.2% GDP growth for the first quarter, more than three times the average of 1.9% for the other G7 countries combined. However, by the end of the year, the annualized growth figure had leveled off at 3%, roughly the same as the U.S. The reason cited for the decline in domestic growth during the balance of 2010 was weak export trade.

The U.S. does account for 80% of Canadian exports, and, without a full recovery south of the border, export demand suffered. The USD CAD currency pair tells the story. The Canadian Dollar has blown past parity with the greenback in 2011 and continues to appreciate, a positive trend that currency trading enthusiasts have kept a close eye on.

It takes time to develop more export avenues on the global stage, but the prospects for the future will come from the west, not south as in the past. The IMF, as well as many other leading economic research groups, is projecting the growth trends in Asia, especially in China and India, to continue for the next two decades. Years of corporate off shoring have relocated the manufacturing center of the planet to China. India and others have followed suit, resulting in the largest redistribution of wealth that the world has ever experienced.

Prospering middle classes in Asia are also desirous of the Western lifestyle, complete with better homes, cars, clothing, and food. Although their national economies are currently driven by exports, both China and India will evolve to a more consumer-driven environment over time. CEO’s for nearly every major multinational company have often noted in recent quarterly reports that their future prospects will come from servicing demand for their many products and services in these burgeoning markets.

Canada has already benefited from China’s unquenchable need for energy imports, but other opportunities will abound as well. Forecasting growth and demand from Asia may be difficult, but well-established trends will create future export demand. Consequently, Canada can already forecast GDP growth in 2011 in the two to three percent range.

Top 5 Sources For Financial News In Canada

Philippine Stock Market Board by Katrina Tuliao, on Flickr Guest post by Andrew Salmon

Keeping up with the ever changing landscape of the economy both in Canada and around the world has become a by the minute exercise which traditional print newspapers can no longer handle. Timing is everything and people are turning to alternate suppliers for their financial information. The Internet has changed the way we do business and it’s no surprise that most of our attention is now turned there as we keep our fingers on the pulse of the nation.

Here are the top five sources for financial news in Canada.

5. Canada.com

This website is a great place to start when checking the financial world is a must but time is short. Sort of a catch-all for Canadian news feeds, this site provides compact headings for the news of the day. With smaller headings, there is less scrolling and you can pinpoint the story you’re looking for easily and click directly to it without wasting precious seconds. The site also provides videos of the day’s news, a stock quote feature for the latest prices, and a free newsletter.

4. Canadian Business

The name says it all and the site is a priceless resource for business and daily financial market news in Canada. Everything you need to know about stocks, bonds, commodities and other financial information is at your fingertips and there is expert analysis to help you digest all the data. This is one site you definitely want to bookmark.

3. Financial Post

One of the mainstays of Canadian business reporting, this essential resource can meet all of your financial needs. If you’re stopping by for a quick look to see how the loonie is doing or you’re looking for up to the minute stock figures you’ll find it here. In depth articles follow, covering the Canadian business scene and the world markets and trends to keep you one step ahead of the competition. It’s a global economy and Financial Post hasn’t forgotten that.

2. CBC News – Money

If you’re looking for the latest news on the Harmonized Sales Tax, currency rates, Canadian employment numbers, or market information than CBC Money is your website. They currently have a section dedicated to the 2010 federal budget. The only downside of this website is the comments section which seems to attract a mixed bag. The site does feature great CBC news videos if you’d rather have your business updates, interviews, panels, and breaking news in video. A valuable site when you don’t have a lot of time.

1. Globe And Mail

Whether in print or online, the Globe and Mail is the backbone of the Canadian financial scene. The website always features the most up to date news. Hot off the presses articles, stock quotes and market blogs are constantly updated. Plus the site has a traditional feel for ease of use regardless of your computer savvy. It’s as close as you can get to a print newspaper while still offering all the immediacy the Internet can provide.

This article was written by Andrew Salmon from LifeCover – a website with information about life insurance in Canada.