In this commentary AIMS Board Chair John Risley addresses the belief that Canada’s economy will quickly stabilize now that we are emerging from the economic crisis. Many folks continue to believe we can and will return to the period of heady growth experienced in the period from 2003 to 2007. Risley shares several reasons why that scenario is unrealistic.
Governments in the developed world are having to deal with huge deficits and to look at raising revenues and reducing expenditures, thereby ensuring there will be no more fiscal stimulus upon which we can rely. This situation is exacerbated by the sluggish real estate market and the inventory hanging over the market. In addition, the geo-political situation continues to be very challenging.
In So what can we do? Risley asserts that Canadians need to be prepared for sluggish economic growth, and Canadian policymakers need to help rebuild the relationship with our largest consumer – the United States. Canada has been lucky – the effects of the financial crisis left us relatively speaking largely unscathed. The danger now is one of complacency. This region, like the rest of the country, needs a prosperous and growing global economy with which it can trade.
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