One of the most frustrating issues for Poloz is the country's
weak export growth, especially outside of the energy sector.
Not exact matches
Even the somewhat
weak loonie hasn't spurred much
growth in Canada's
export sector.
With the domestic economy too
weak to maintain China's high
growth rates, and with
exports to the West hurting, the Communist Party in Beijing and its regional offshoots have come to rely heavily on cheap
exports and debt - fuelled investment to sustain China's fragile fortunes.
That would be bad news for the torrid earnings
growth being enjoyed by US companies, since the large multinational corporations with heavy weighting in stock indexes have had
exports boosted by a
weak currency.
While a
weaker yuan can hurt U.S. multinational companies»
exports,
growth in China has been largely infrastructure driven, which draws in commodities but not consumer goods, said McCaughan, whose firm manages nearly $ 343 billion in assets.
And now there are concerns that
growth will decelerate into stagnation and China will fall into a middle - income trap, with
weak manufacturing,
exports and construction.
Last year, and for the first time since 2001, the contribution of net
exports to overall
growth turned positive, but the performance of non-energy
exports and investment remains
weak.
Meanwhile,
exports and investment are still
weaker than one would expect at this stage of the business cycle, even though
growth in the global economy has also surprised on the upside.
Japanese equities also should continue to see upside, thanks to a
weaker yen, long - awaited domestic
growth and increasing
exports, a beneficiary of the improving global economy.
The real issue that was not addressed in the budget is the absence of any economic engine to spur a recovery in
growth in 2014 and beyond, The household sector is deep in debt; housing construction has stalled; companies lack confidence and are not investing; the federal and provincial governments are in serious restraint mode; and the
export sector is
weak and deteriorating.
The
weaker dollar supports U.S.
export growth, which in turn has helped bolster corporate earnings.
The three main downside risks to inflation in Canada relate to the European crisis,
weaker demand for Canadian
exports and the possibility that
growth in Canadian household spending could be
weaker.
Additionally, a
weak dollar serves to stimulate economic
growth through
exports.
If these inflows however are counterbalanced by rising private inflows from Chinese businesses and wealthy individuals taking money out of China, either because of
weaker domestic
growth prospects of because of rising nervousness and uncertainty, asset prices might not fall as much as we would have expected, but Australia will be caught in a vice a little like that of, for example, Spain, in which
export weakness can not be partially counterbalanced by a
weaker currency.
As the Canadian economy contends with softer than expected
exports,
weak business investment and effects of the Alberta wildfires, real GDP
growth in 2016 is forecast to be 1.4 per cent...
To ensure sustainable
growth, it needs to reduce the dependence on
exports and fixed asset investment and to increase domestic consumption — but the rate of consumption
growth remains
weak.
2015.10.28
Exporting represents golden
growth opportunity for small - and medium - sized businesses in Canada: RBC Economics A
weaker Canadian dollar, lower energy prices and stronger
growth in key
export markets are creating opportunities for small businesses to reap the benefits of
exporting...
2016.06.10 Canadian economic activity erratic through 2016: RBC Economics As the Canadian economy contends with softer than expected
exports,
weak business investment and effects of the Alberta wildfires, real GDP
growth in 2016 is forecast to be 1.4 per cent...
Economic
growth in the UK was broadly supported by consumer confidence and
exports reinforced by a
weaker pound sterling, with the easing of credit conditions leading to credit
growth, loose fiscal policy and global economic
growth.
It was the
weakest in nine years, as tight monetary conditions have crimped industrial activity and
export growth slips amid waning demand from U.S. and European markets.
-LRB-...) Russia's economic
growth has been slowing amid dwindling investment, hefty capital outflows, and
weak demand and low prices for its commodities
exports.
Domestic demand
growth was noticeably
weaker in the quarter, following very strong
growth through 1999, while the contribution to
growth from net
exports picked up.
In contrast, net
exports have been a significant drag on
growth, largely because of
weak merchandise
exports.
Growth in Australia's export volumes has remained weak over the past year or so, despite strong growth in global demand and world commodity prices, with total exports virtually unchanged from four years ago (Grap
Growth in Australia's
export volumes has remained
weak over the past year or so, despite strong
growth in global demand and world commodity prices, with total exports virtually unchanged from four years ago (Grap
growth in global demand and world commodity prices, with total
exports virtually unchanged from four years ago (Graph 31).
Of these
weaker data points to which Poloz makes note, the most concerning are the drop in non-energy
exports, anemic wage
growth and a disappointing jobs market.
Even Germany's economy grew only 0.3 % last quarter, or 1.3 % annualized, as
weak demand in Europe and patchy global
growth hit its
exports.
«Overall
growth in China is evolving broadly as envisaged, but with a faster - than - expected slowdown in imports and
exports, in part reflecting
weaker investment and manufacturing activity,» the IMF said.
It is also true, of course, that if
exports are
weaker, then GDP
growth will also be lower than it would have been without the «external shock».
Otherwise devaluation or exchange rate depreciation is supposed to help a
weak economy dampen unemployment by lowering real wages or by stimulating real
growth through greater real
exports.
Gold prices rallied to $ 1,234 a troy ounce, their highest level since Sept. 23, a day after minutes from the Fed's September policy meeting revealed officials were worried
weaker growth in Asia and Europe could curtail U.S.
exports.
One risk would be the negative demographics of an aging population, which signals
weak consumption, however the economy is heavily geared towards
exports, which benefit from «synchronized global
growth».
These developments, accompanied by a
weak export performance, led to a marked slowing in output
growth.
Weak growth in the world economy and the drought in Australia have seen
export earnings decline over the past couple of years (Graph 44).
With
weak demand from Chinese consumers, the country may need strong
exports to lift its
growth.
While consumption remains anemic, a
weak currency provides a way to prop up
growth with
exports.
A recovery in the value of dairy products, New Zealand's biggest
export, may bolster the nation's economic
growth and make the central bank wary of cutting interest rates much further to boost
weak inflation.
Without increases in real wages or asset prices to drive consumer spending
growth, and business profits damped by high input prices, the only bright spot I can envisage will be the US
export sector, which benefits from a
weak US dollar.
Weaker demand for
exports will raise new questions about the Chinese government's ability to meet its
growth target of about 6.5 per cent.
The report does contain some good news for Ontario, which will see an
export - led revival to 2.3 per cent
growth this year — the second - highest rate in the country — after advancing by a
weak 1.3 per cent the previous two years.
Exports have been
weaker than anticipated, but are still expected to contribute a larger share of Canada's
growth, the bank said.
However, net
exports were
weaker than projected and continued to exert a significant drag on
growth.
The industry's plan B, to
export production to assumed perennial
growth markets in Asia, has also floundered amid a global market awash with supply from other countries and
weak demand; Chinese coal consumption fell nearly 3 % in 2014 while India, the world's third largest buyer, says it may stop imports of thermal coal in the next three years With domestic markets collapsing and no lifeline from abroad, 264 [1] US mines were closed between 2011 and 2013.
Consumers are generally bullish, businesses are investing and the trade deficit is benefiting from
export growth, which in turn is benefitting from a
weaker dollar and broad positive global economic
growth.