Good for Canada! For the third consecutive year the World Economic Forum has ranked Canada's banking system as the soundest in the world. That's quite an accomplishment when you think about it in the context of a global recovery from the most severe financial crisis since the Great Depression. But will our future continue to be as bright? It appears it certainly can be, if we enthusiastically embrace the opportunities before us.
In his September 15 remarks to the St. John's Board of Trade, Deputy Governor of the Bank of Canada, Timothy Lane, reported that Canada's economic downturn during the crisis was less severe than other countries for three key reasons: a strong banking system, strong household and business balance sheets and a timely response by government to the crisis that enveloped us.
The good news is that recovery from the crisis is continuing in Canada, as our GDP growth is at pre-recession levels today. And there are other promising indicators:
- Total and core inflation are projected to return to 2% by the third quarter of 2011, when the Canadian economy is expected to return to full capacity
- The Canadian economy is projected to grow by 3.5% in 2010 and 2.9% in 2011, after a contraction of 2.5% in 2009
- Lending conditions for non-financial firms are improving.
However, there is some dampening news as well. Our prospects for long term growth apparently will not be as strong as in previous decades, reflecting other factors facing our economy today.
Not surprisingly, there is the reality of an aging work force, which has been targeted as presenting challenges of change by other department of government include the Finance Department. But in addition, Canadian workers are competing in a global economy with others who are more technically savvy and working on higher tech processes and machinery than we are.
How is this possible in our electronic-obsessed, internet-addicted world? For me, our sound financial leadership is a natural springboard to a myriad of global business opportunities. Yet we need to find more innovative ways to keep up with global workers to compete.
It's Your Money. Your Life. Are you and your family poised to take advantage of economic recovery in a new global marketplace?