In Canada, as in other parts of the world, there has been a significant decline in macroeconomic volatility since the early 1980s. Over roughly the same time period, there has also been a reduction in the volatility of fixed-income markets.
At that time, global trade was rising twice as fast as global GDP and, more recently, the ratio has been essentially flat (Chart 13). A number of explanations have been advanced to explain this shift, which are also relevant for explaining Canada’s recent export performance.