anada’s economic soundness has garnered renewed interest amongst foreign investors. The country was fortunate to escape the economic crisis unscathed, unlike the rest of the world. It boasts one of the strongest financial systems on the globe, ranking best in the world by the World Economic Forum.

While it appears that the Canadian economy remained unscathed throughout the financial crisis of 2007-2008, further deterioration of public finances combined with declining exports while commodity prices remain high may put further pressure on the Canadian economy. With the global economic recovery in doubt, Canada’s resilient economy is beginning to mimic that of the United States in 2006-2007:

• Unemployment is now moving upwards, 170,000 full-time jobs were shed in June
• High reliance on exports to the United States, United Kingdom, and Japan
• Foreigners continue to divest of Canadian securities
• Canada’s trade balance is now negative
• Public finances, including federal and provincial, are in terrible condition
• Unfunded liabilities continue to grow in Medicare, CPP, and OAS
• Home sales have begun to fall off a cliff, down 30% since implementing HST

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