Many Franks pointed out this article in the Economist.
Looks like some gloomy gus over at that magazine is taking a peek behind the curtain that is Canada’s economic miracle.
WHEN the world financial system collapsed in 2007, triggering a global recession, Canada recovered faster than any of the other members of the G7 group of large developed countries. Its banks remained solid, while low interest rates encouraged consumers to borrow and spend. But five years on, consumers are showing signs of flagging. The economy is set to expand by a paltry 1.6% this year. So the authorities are casting around for another source of growth. The trouble is they cannot seem to find one.
The problem?
Our engine of growth recently has been based on rising household debt. Imagine our surprise when the result of this growth in debt manifests itself in high debt loads.
Will we be able to engineer a smooth transition to an economy that grows based on business investment and exports instead?
Read the full article here.
