According to a Toronto Star interview with Stephen Harper, he said "There remains very serious economic uncertainty in the United States and in other parts of the world, and it's impossible for me to see how Canada can be entirely immune from those developments." (I address this issue here in Should I worry about the U.S. economy?)
So please don't lambaste me for being the bearer of less-than-glad tidings. There is just no way Canada is going to completely avoid fallout from what's going on just south of the 49th parallel. Check out our auto industry in Ontario as an example. What this means in practical terms is, of course, anyone's guess. And Harper does chime in with the statement so often repeated by the media that we're at a 30 year low in terms of the unemployment rate - a figure so easily misleading in my opinion it is barely worth citing these days. (See why I make this audacious statement here, Lies, Damned Lies, and (Job) Statistics!)
I will definitely keep you posted, and give more detailed analysis of the situation, in the new year. But for now what I suggest is that unless you work in a field that does well when the economy slows, you might want to start thinking about battening down the hatches and restricting any major purchases if these could leave you twisting in the wind should your income be threatened. Though having said this, I might well be ignorant of ways our government can shield us from a slowdown. Here's another headline today, this one from the Globe and Mail: Economic growth tops forecasts.
Any thoughts?
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