It is interesting to compare developments in the Canadian and European internal exchange rates. For example, since the euro was introduced, Spanish competitiveness (as measured by GDP deflators) has fallen by about 30 per cent relative to Germany. During the same period, the Alberta exchange rate moved even more dramatically, rising 40 per cent relative to Quebec (Chart 5).
Both liquidity and credit conditions in the country continue to be in line with the country’s overall economic growth. As of end-April 2019, bank lending and liquidity grew by 12.7 percent and 7.0 percent, respectively. Other aspects of the economy offer a sound basis for optimism. The country’s external payments position remains manageable and sustainable as it enjoys support from different fronts.