Canadian Economy still showing signs of growth
The Canadian Economy has seen surprises in the past few months. And I don't mean the bad kind. Sure the rest of the world is experiencing contraction and even recessionary indicators, but Canada has surprisingly shown resilience to the downward trend. Canada is still foundational in supplying raw materials ( oil, wood, metals, potash, water...) and demand for the basics is still there. Let me cite 2 examples
Russia recently has increased its export tax on wood. It is now almost up 80% over last year. China has been a big importer of Russian wood in the past years. But with this new tax, China has begun to look elsewhere. And it's looking at Canada. Our beleaguered wood industry has not seen growth in sales orders in the past 5 years, so this is a pleasant change for the good.
Secondly, water. Canada has plenty of it ( Ontario has so many lakes that some even have no name!!) and its becoming a serious export commodity. As well Canada is a leader in the technology of water preservation and technology that delivers clean water. "Its one of the fastest growing industries and Canada is leading the way. " states Duncan Stewart , director of research at Deloitte Canada's Technology and Greentech division.
So yes the media is blasting out all kinds of bad news recently, but hidden in the noise is positive data that is getting drowned out by all the negative press. Once again as real estate investors we need to study the fundamentals of the economy to see what is really happening.
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Of course you say real estate is still booming. You are in the business. Believe me real estate prices will drop significantly.