Chinese growth has meant enormous demand and rising prices for many of Canada’s resources, particularly coal and oil, as well as base metals such as copper, nickel and aluminum. As millions of people in emerging markets left rural areas for cities, demand increased for building materials such as the iron ore used in steel, and this supported prices.
Although the financial crisis led to price declines, many raw materials rebounded sharply. By April 2011, the Bank of Canada’s commodity price index had reached its post-crisis peak. However, rapid growth tends to moderate as an expansion matures.