The strengthening Canadian dollar through the latter part of 1996 accelerated the decline in interest rates, as the Bank of Canada sought to maintain the degree of monetary ease achieved in the autumn of 1996.
Retail sales constitute about 45 percent of private consumption, which in turn amounts to a share of almost 60% of GDP. Thus, retail sales alone explain around 30 percent of aggregate demand in the euro area. These impressive figures are enough to underline the importance of the retail sector for the overall economy.