Loonie Could Go Down To 71 Cents US “As Plants Shut Their Doors In Canada”: Report

More evidence of how ‘great’ the economy is doing…

While the Trudeau government oversees an epic exodus of investment from Canada, there are other problems on the horizon.

Due to weakness in exports, a report by CIBC Capital Markets says the loonie could fall down to 71 cents US in the upcoming decade.

According to the report, “Simply put, export volumes have grown at a snail’s pace as plants shut their doors in Canada and opened elsewhere.” 

Interesting, the government keeps telling us how great the economy is doing…

According to BNN Bloomberg, the authors of the report – Avery Shenfeld and Royce Mendes – recommended “more education and targeted training, faster government approval for projects, and lower corporate taxes as remedies that would help improve Canada’s competitiveness.”

They added, “If we don’t make progress in tilting the playing field back to Canada, there is always the market’s invisible hand to do the work for us. A poor current account balance will, over time, tend to push the Canadian dollar weaker against other majors. That will particularly be true if, given an elevated household debt level, the central bank has to proceed more cautiously on rate hikes than the U.S.”

A big issue is that not enough plants are opening up in Canada, so even if there are some months where export output increases, the capacity to expand exports isn’t there.

Unfortunately, in the current anti-business environment under the Trudeau Liberals, there is little incentive for companies to build a new plant and invest in the country. The government keeps making it more and more expensive to do business here, while other jurisdictions like the US are making it easier to succeed and prosper.

Spencer Fernando

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Joanne
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Joanne

Justin and his leftist companions are taking a wrecking ball to the economy.

Wendy Lush
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Wendy Lush

Venezuela, here we come..

Clive Edwards
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Clive Edwards

Nah! He’s bankrupting the country so the globalist banksters can foreclose on us. Either that, or making it cheaper for the Chinese to buy us out. Which tribe will win? Not ours.

Darrin
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Darrin

Don’t worry Spencer the Green Economy and AI will expand the middle class and those working hard to join.

Laurie Germsheid
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Laurie Germsheid

you’re kidding right? The Chinese, Europe and the American’s already own those markets. Canada stands no chance of being competitive with them. The only things going green are doing so with tax dollars, dragging us further down the drain.
The fallacy that the green economy is suddenly going to flourish and become profitable to all is a pipe dream.

Sewer Rat
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Sewer Rat

I’m surprised it isn’t past that already! I think that is the real news story here.

Jen
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Jen

Reality will soon hit us as it is happening already under Trudeau liberal gov and the media. And, as long as the liberals maintain their high wages; the rest of us can go to hell. Keeping canadians at a low rate in living gives the liberals power and superiority on us to run and abuse as they please. Nationalizing everything gives power to gov to rule over as they wish. Finally, if I had a business and faced this mess: high taxes; long list of regulations and whatever added, they leave me with no choice, but either close shop or… Read more »