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Economics canada - Essay Example

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The appreciation of the rates of exchange has resulted into some strains upon the central areas, which usually have an economic base that is stable, though. The…
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Economics canada
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The economy of Canada managed to overcome various obstacles that deter a steady growth in the economy as per the Canadian Economic observer. Most of the funds were earned courtesy of resources. This economy was able to absorb such shocks like those caused by the declining US economy as well as the credit crunch rocking the whole globe. Products from the Agricultural sector realised their biggest increases in the year 2007.
While numerous prices in the financial markets and the commodity markets as well were swiveling for over one year, real economic growth especially in the employment and output fronts were all time most steady. As per the statistics the real GDP growth was; 3.1%, 3.1%, 2.8% and 2.7% for the years 2004, 2005, 2006 and 2007 respectively. This growth in GDP is the most stable over four years since 1961.
In comparison to the US, Canada’s real GDP growth was 2.7% in the year 2007 while that of US was 2.2%. For the first time in the last decade such a surpassing growth has been witnessed between Canada and US, in favor of the latter. (statcan.gc.ca, 2008)
The Canadian conservative government, on its website, says that its legacy has been one of achievements. It has been striving towards achieving a Canada where citizens and their families would have an affordable life. The period of economic turmoil has had the government approaching its long-term goals with various economic weapons. Among the economic policies set by the government is the balancing of major tax cuts coupled with a disciplined reduction in debt, prudent government expenditures and a focused spending. Based on such policies, taxes have declined, disposable income available for households has escalated and thus, citizens have more income to save.
To make the process of saving for its nationals easy, the conservative ...Download file to see next pagesRead More
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