Summary
This article is about Canada's improving economy. Statistics Canada reported recently that Canada's GDP, gross domestic product, rose by 3.3% in the fourth quarter. Recently, our Canadian dollar's value rose to 102.90 cents. This is the most is been worth in the past three years. The increase in exports caused the increase in our GDP in the fourth quarter. Investment also increased this past year. Overall, Canada's GDP grew by 3.1%, but in 2009 it lowered by 2.5%, so this is a good sign for our economy. Canada's GDP growth exceeded the expected growth, estimated by the Bank of Canada. Because of this sudden rise in GDP for this year, the Bank of Canada was thinking of rising their lending rate. Currently, the rate is steady at 1% and the Bank of Canada fears that the political events in the Middle East are going to cause the economy to crash. Economists are hoping for the best.
Connections
This article is about Canada's GDP growth in the past year. Chapter five is about GDP, employment rates, and incomes. This article connects to chapter five because it is about how Canada's GDP has grown. Gross domestic product is a value of goods and services given in a year. Our GDP is calculated using many different factors of life in Canada. If there was a rise in GDP, it means that our economy is improving. It means that there may be more jobs available to people or more people working, which means that the unemployment rate is lowered. The article mentioned an increase in domestic exports and an increase in business investments, these help make Canada's GDP grow. Investment, as defined in the textbook, is business investments on machines and equipment. This chapter connects to this article in many ways.
Reflection
I think this article shows us that our economy is improving from our recent recession. Our dollar is currently worth more than the US dollar and our GDP is growing. Both of these show me that things are just going to get better, hopefully. I was amazed to see that GDP expectation from the Bank of Canada was wrong. Not only was it wrong, but it was too low. I find this quite fascinating, because why did our GDP improve more than expected? I don't really know, but it might be because of some of the reasons listed in the article or other reasons I hope to find out. All in all, I hope Canada's economy will continue to improve, along with our GDP.
Janice's post about GDP is quite interesting, because it talked about improvement in Canada's economy. For my ch. 5 post, I talked about how the economy recovery of the United States is slower than expected, and how this could affect Canada due to our close relationship to the States. This article showed the opposite result, and it seemed to be interesting, many people, especially us as students don't really realize economic recovery in our daily lives. It's funny how two countries so similar in many ways can produce such different economic results. All in all, it's good to hear that Canada is finally stepping out of its economic downfall.
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