In general, all else equal, there has been a substantial reduction in financial tail risks on account of the improvements in the balance sheets of firms and households that were generated by pandemic-related fiscal transfers and the excess savings accumulated during pandemic shutdowns.
In order to achieve a sustainably stronger profile of export growth, we cannot rely solely on the U.S. market. There is no doubt that an improving U.S. economy is good for Canada. However, the growth potential of emerging-market economies is projected to be about four times that of the world’s advanced economies.