BOC's Schembri: Improvement in competitiveness from lower CAD is less than expected

BOC's deputy governor in Halifax

  • Most of the effect on overall export growth has likely already occurred

  • Oil price drop exposed structural weaknesses which are now weighing heavily on export recovery

  • Export growth since 2008/09 crisis remains below experience of past recoveries

  • There's good reason to believe exports will strengthen further as US and global economies gain momentum (Last nights Chinese data might put a pin in that plan)

  • Sees significant growth prospects for exports of services

For all the talk of how a sharp move in a currency can affect an economy, Canada is showing that sometimes that is not the case.

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