reported in November that during a speech to the Economic Club of Canada, Alberta Premier Alison Redford urged the federal government to have less dependence on the United States and focus more on exporting to various Asian nations, especially energy.
Another key Canadian figure is now also urging governments and the private sector to direct fewer resources to the U.S. and begin trading in the Asia-Pacific region, specifically the Chinese market.
In an interview with CTV’s Question Period
, Bank of Canada governor Mark Carney, the nation’s central bank head, explained that the U.S. economy may take a while to become an economic powerhouse again and actually may never fully recover. He stated that Canada must look elsewhere to export its goods.
The economic decline south of the border is hurting Canada approximately $30 billion per year due to the paucity of exports. Furthermore, the European economic and sovereign debt crises are also costing the Canadian economy about $10 billion or 0.6 percent – Carney believes consumer spending and business investments as ways to curtail the decline in growth.
“The nature of the U.S. recovery, it's going to take a number of years before they get back to the U.S. that we used to know,” said Carney, a former Goldman Sachs executive director. “In fact, they are not in our opinion ultimately going to get back fully to the U.S. we used to know.”
Although Carney believes it would take quite a bit of time to enhance a relationship, the central bank head noted that China has a great deal of potential for trade because it “under-represented.”
“It’s going to take multiple visits, multiple initiatives. Not, obviously, from the public sector alone, but clearly a focus from the private sector,” added Carney. “That is absolutely essential for developing our future and it’s a key element of our medium-term growth.”
This latest forecast of Carney’s comes as he recently warned about the accumulating Canadian household debt
that has inflicted the nation’s economy. The bank estimates that for every dollar a Canadian owns they owe $1.54.