It’s difficult to say anything new about the economy at the moment: Europe’s financial troubles may adversely affect the global economy; China and India, the economic growth powerhouses of the last couple of decades, are experience a slowing of growth; and the US is experiencing its slowest economic recovery since the 1930s. Even last week’s World Economic Forum in Davos, Switzerland, was focused on the risk of a broken Eurozone and the effect that could have on the global economy. None of this is new nor unexpected.
Mark Carney, Governor of the Bank of Canada, was present at the Global Economic Outlook 2012 panel in Davos and provided some additional insight into the situation. In addition to observing that we’re now in an age of an average of 3 per cent economic growth globally, he also noted that there is an especially substantial M&A and equity backlog at investment banks, as feelings of insecurity are feeding a reluctance to invest. In Carney’s words, “the contingency measures that institutions are taking (to address) the possibility of adverse outcomes in Europe is holding back their willingness to provide finance across a range of products. So implementing (the IMF)’s solutions will make a real difference in corporate attitudes and, more importantly, the direct supply of capital.”
TEC members receive Dr. Andersen’s current report, which goes into additional depth on the developing situations in Greece and Italy, as well as providing detailed forecasts for Canada’s commodities, construction and regional economic performance that can help you plan your business activities.