Commodity prices are a very important channel for transmitting international shocks to the Canadian economy. With the oil-producing regions of our economy already stressed, this shock can only deepen and prolong the adjustment process discussed earlier. And the effects go beyond oil.
These stresses will inevitably find their way from commodity-producing regions into other parts of the country as those who are affected directly spend less money on everything. In light of all these developments, the Canadian outlook is clearly weaker now than it was in January.