This next decade could be the Canadian economy’s time to shine in the international limelight, according to a CIBC World Markets report.
The Canadian economy could be a G-7 leader in the next few years thanks to low government and corporate debt compared with other nations, CIBC said Friday morning.
Avery Shenfeld, CIBC’s chief economist said: “Canada’s resource endowments, resilient financial system and favourable demographics … make it an economic contender looking out over the next five to 10 years.”
He cautioned that Canada’s existing fundamentals are no “iron-clad recipe” for success, but its relatively low debt load makes it better positioned for growth than other G-7 nations.
Shenfield said Canada’s current national debt, which is 3% of GDP, is far better than double-digit deficits in the U.S. and U.K.
“That doesn’t mean Canada won’t see a huge fiscal drag in 2011 … but thereafter the pain will be much lighter here than elsewhere.”
CIBC also said an influx of Asian immigrants to Canada could help the country replace its aging workforce faster than other nations such as Japan and make economic inroads to emerging markets worldwide.