As Loonie Falls, Economic Outlook Remains Hopeful For Business Says Bank Of Canada - Essay Example

The paper "As Loonie Falls, Economic Outlook Remains Hopeful For Business Says Bank Of Canada" is an outstanding example of an essay on business. Business entrepreneurs and investors have long been waiting for a falling loonie in Canada, and the report suggests that it is about time they meet their expectations. However, the merits and demerits associated with the falling loonie depend upon the place of a sector in the economy. Major winners include exporters, hospitality and tourism, manufacturers, and exporters that have lost market share in the past years in the world. On the other hand, the life of the consumers, importers, and travelers is made more expensive by a weaker dollar because of its tendency to stoke inflation. Overall, falling loonie can be perceived as a positive thing since this would increase the competitiveness of Canadian goods and services. The weakening of the dollar is good news for the economy’s large swaths that have, for the past few years, been struggling to overcome the effect of the recession. They mostly include the manufacturers that at least have an opportunity of making some profits. A lower Canadian dollar has the tendency to produce more money for investment, an increase in the number of staff, and higher profits since a significant number of sales take place in US dollars. Investors see it as a return to normalcy after years of trouble. Although economic growth of the US has a huge impact on the business and economy of Canada, yet it would be prudent of Canada to not entirely depend upon the US for its businesses; Canada should also take other measures to strengthen its economy, one of which could be accelerating the sanction of the free trade agreement with Europe.