Not only have these exports contributed directly to the rapid economic expansion in Canada, they have been a source of encouragement that has added to the surge in purchases of machinery and equipment by Canadian businesses. And, of course, the recent gains in employment and incomes in the export sector have strengthened the momentum of spending by Canadian households.
Together, buoyant exports, strong investment by domestic businesses, and robust household spending have led to a surprisingly strong demand for Canadian goods and services. What is remarkable under the circumstances is that pressures on the basic trend of inflation in Canada have been minimal.