Main economic indicators are showing that the Canadian economy has made a solid and sustainable recovery, with the momentum reflected in an anticipated increase in interest rates during the remainder of the year.
What is less controllable is the impact of international forces on the domestic economy. Peter Andersen flags that the Greek debt crisis will continue to dominate the business news over the summer, with Ireland and Portugal also creating a stir. Although these aren’t major economies with a direct impact on Canada, the unsettling effect they may have on the world economy in the highly sensitive post-GFC environment remains to be seen.
In addition, the Japanese earthquake and tsunami are starting to affect international trade and local production; for example, some imported components used in domestic products have been out of production or distribution significantly disrupted. You can read more about how this is affecting supply chain strategies on the Harvard Business School Working Knowledge Blog here: http://hbswk.hbs.edu/item/6684.html?wknews=05312011
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