Canadian exporters suffered particularly, owing to the sharp fall in the components of U.S. economic activity that matter most for Canada. For example, U.S. demand for motor vehicles fell by more than half and housing starts by two-thirds. Partly as a result, several major Canadian industries are now undergoing deep restructurings. The recession had a considerable impact on employment.
Against the US dollar, we appreciated by nearly 40 per cent between the beginning of 1993 and the beginning of 1997; and then we lost all of that appreciation (which means that we declined in percentage terms by nearly 30 per cent) over the next 18 months.