Another factor that has been supporting economic activity in Canada is the amazing strength of the US economy, our major export market. That economy has had a remarkable eight-year-long expansion, marked by vigorous growth in production, strong gains in employment, and low inflation.
Inflation has been held down by improvements in productivity as well as special factors such as a strong US dollar, low commodity prices and intense global competition. Stronger domestic demand has also been instrumental in Canada’s economic pickup.