The Conference Board of Canada took a look at the problems in the U.S. sub-prime mortgage market and has concluded that it’ s unlikely the problems will spread north.
CANADIAN ECONOMY LIKELY TO OVERCOME U.S. SUB-PRIME CRISIS
Toronto, October 4, 2007 – Canada’s economy should emerge without serious damage from the U.S. sub-prime debacle—if the U.S. economy can stay out of recession—according to a Conference Board of Canada analysis released at its Business Outlook briefing today.
“The combination of the strong Canadian dollar and slowing U.S. growth will decrease exports in sectors such as wood products and automobiles, but the Canadian domestic economy remains robust and should offset declines in exports,” said Kip Beckman, Principal Research Associate and author of The U.S. Housing Market Meltdown: Implications for Canada. “In addition, most Canadian banks have limited direct exposure to the sub-prime mortgage market, and should be able to weather the storm. [Read the Conference Board report]