This is because it is in sounder shape now than it has been for many years. Canadian businesses have been investing in new technology to increase productivity and efficiency. Governments are no longer draining national savings to finance huge budget deficits. And with the Bank of Canada’s commitment to inflation control targets, inflation is low and stable.
But what about our economic prospects as we look ahead? Let me start with the financial climate. Global financial markets have been calmer recently compared with the turbulence last autumn after Russia declared a debt moratorium. Cuts in official interest rates around the world since then, and the success of some emerging market economies in addressing their problems, have clearly helped.