Photo: Adrian Wyld, The canadian Press
The new governor of the Bank of Canada, Tiff Macklem, in a speech last may 1
Canada should not rely too much on its commercial partners to help it in its economic recovery, warns the new governor of the Bank of Canada.
Countries whose prosperity depends heavily on international trade, Canada “is able to shoot relatively well,” the escalation of trade tensions that rocked the world in recent years, welcomed Tuesday’s Tiff Macklem at its first public release since it was the successor to Stephen Poloz at the head of the canadian central bank. However, the pandemic of sars coronavirus and the economic crisis that it has caused have not failed to encourage companies to seek ways to shorten their supply chains ” and “increase the risk” that the country will close more about themselves and that protectionism is rising.”
In this context, he said, ” it will be important for Canada to have a voice on the international stage. But the reality is that we will probably have a lot more to rely on our internal growth as we have done in the past, at least for a while.”
Began last month at the same time that the government undertook the déconfinement gradual of their economies, Canada’s recovery promises to be slow and long, said the governor. “One day, the economy has regained its momentum of go, and our interest rates will return to more normal levels. But we are in a deep hole and it will take us a lot of time to get out. “
To members who pressed him to give more details on its assessment of the economic situation, and Tiff Macklem replied that they will have to wait until next month as the Bank has done and can show the grind of the summer of its monetary policy Report. He warned, however, that the high degree of uncertainty prevent it, like last time, in April, to produce economic forecasts and figures that we opt rather for a “central scenario” and a list of risk factors that may deviate.
In its economic forecast last week, the Organization for economic cooperation and development (OECD) has predicted in Canada a decline stunning in its economy of 8 % this year and 9.4 % in the case of the second wave of the pandemic.
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