Trade making Canada recession-proof
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Canada's trade-dependent economy helped the country avoid the recession experienced in the United States during the...
Canada’s trade-dependent economy helped the country avoid the recession experienced in the United States during the 2001-2002 time frame, according to a leading economist. In a research report, Andrew Tilton, an economist with the Goldman Sachs Group, said Canada has fared better than the U.S. after the Internet stock bubble of the late 1990s, primarily because Canada has relied more on trade, and less on technology investments than the U.S.
Export trade accounts for 65% of gross domestic product in Canada, compared with less than 20% in the United States. In the last year, Canada has had to contend with the "countervailing force" of currency appreciation; although Mr. Tilton said the country’s surplus factory shipments still remain at a healthy level.