The growth of the Canadian economy is not moving as fast as it should. Part of the problem has to do with the Canadian Consumer Price index. At the time of this writing, the Federal Reserve in the United States has made changes that were not favorable to the Canadian economy. Combine that with lower oil prices, and lower exports, it has been a challenging time for the economy of Canada. The only time that people in Canada tend to notice this very clearly as when they travel from Canada to the US. For every dollar that they exchange, they end up with about $0.75. It is then that they realize that this exchange rate, which used to be much closer, is definitely reflective of the times. The Canadian dollar Outlook may not be good, but there are strategies that can be used to rectify the situation.
How To Resolve This Problem With The Canadian Dollar
Although most of these ideas may not manifest for years, there are still ways for them to be implemented successfully over time. For example, it may be possible for them to boost their economy by expanding their exports to other countries. Currently, the United States represents about 75% of all of their exports, and all of the rest include the United Kingdom, China, Japan, and many others. However, to expand in these directions, they would have to form new alliances, or increase their exports to these different countries which are currently each trading at less than 5%.
Will This Ever Correct Itself?
Since there is a symbiotic relationship between the United States and Canada, it is possible that there could be a correction that could occur if there is a downturn in the American economy. There seems to be a reciprocal yet opposite effect when there are trading partners that are so integrally connected, spurning one to become successful as the other begins to diminish. However, experts will state that if the American economy does take a downturn, since they are the primary trading partner, this could even hurt Canada more. The goal for Canada should be to expand their reach, not placing all of their proverbial eggs into one basket which is the United States for most of their exports and trading.
How To Improve The Economy Rapidly
The best way to improve the economy is to hope for changes in commodities that Canada uses to go up in price. For example, even though people are motivated by the low cost of oil, as that will help them save money, from the country’s perspective, this is actually detrimental. As energy prices decline, so also will the revenues that can be collected through taxation. Therefore, spikes in products such as barrels of oil can be very beneficial for the economy on a whole.
There are always going to be changes in the economy of both the US and Canada. Though these fluctuations are small, they are definitely noticeable. The current Canadian dollar Outlook seems to be directly related to not only oil prices, but trade relations between the US and Canada. When oil begins to go up in value, and the increase in trade occurs between the Canadians and Americans, there will definitely be an improvement in the Canadian dollar.