This month’s Andersen Report takes a critical look at the ‘financial contagion’ currently working its way across the globe and the looming risk of another recession. In addition to the Greek debt issues discussed last month, other parts of the EU are also feeling the pressure, with government bonds in Ireland and Portugal downgraded to junk last week, and Italy and Spain’s bonds reflecting the increasing risk. The US’s debt discussions are being underlined by poor jobs growth and talk of economic sluggishness, despite positive indicators on economic fundamentals and the expectation of continuing economic acceleration.
On the other hand, the Canadian dollar is exhibiting a safe-harbour appeal, and most economic indicators are positive, with Canada outperforming the US in most economic aspects. Jobs growth, in particular, has been strong, with 86% of gains in full time employment, although labour shortages are starting to be noticed in Alberta particularly.
For more on the European debt crisis, visit the Globe and Mail here: http://www.theglobeandmail.com/report-on-business/international-news/europe-needs-to-contain-debt-crisis-imf-warns/article2102070/
For a thorough analysis of Canada’s economy – and the world’s – this month, the Andersen Report was emailed to all members this afternoon.