yup. absolutely no prob. with canada's economy:
Canada's economy feels pinch of global slowdown
OTTAWA, Feb. 11 (Xinhua) -- As the chill of economic downturn sweeps across the globe, Canada's economy, which has registered one of the highest growths among the industrialized group in recent years, is also feeling the pinch.
Canada, with its abundant natural resources as oil, gas, forestry products and others, relies heavily on world consumption of its commodities, whose prices have been in a constant slump. The recession in the Unites States, which buys three-quarters of its exports, has hurt the Canadian economy even more severely.
FIRST TRADE DEFICIT IN 32 YEARS
Canada recorded a trade deficit of 458 million Canadian dollars(about 373 million U.S. dollars) in December, marking the first trade gap since 1976, federal agency Statistics Canada reported Wednesday.
Exports sank 9.7 percent to 35.3 billion Canadian dollars, the biggest drop since 1982, led by a 19 percent plunge in sales of energy products. Exports of crude fell 29 percent, mostly due to falling prices.
Trade surplus with the U.S. reduced to 3.77 billion Canadian dollars, the lowest since 1998, from 4.6 billion in November.
Canada is the leading exporter of oil and natural gas to the United States and has the world's second largest oil reserves, only after Saudi Arabia.
Statistics Canada also revised its estimate for November's surplus to 1.16 billion Canadian dollars from an initially reported 1.28 billion.
New housing prices also fell 0.1 percent in December, dropping for a third straight month, according to the agency.
JOB LOSSES WORST IN 30 YEARS
Canada suffered its worst monthly job losses in more than three decades in January as the deepening recession forced employers to cut a record 129,000 workers and pushed the unemployment rate to 7.2 percent, from 6.6 percent in December.
Manufacturing is the most hurt. A total of 101,000 net positions evaporated in January, the largest monthly decline on record for the sector, according to Statistics Canada.
"Horrible" and "shockingly poor" were the words that economists used when reacted to the January figures.
Since October, the battered Canadian economy has lost 213,000 jobs.
The severity of the overall job cuts prompted some economists to warn the jobless rate could reach double digits, as hopes for a quick economic rebound grow dimmer.
BANKRUPTCIES JUMP OF 50 percent "HIGHLY UNUSUAL"
Rising unemployment, high debt and the continuing credit crunch has caused personal bankruptcies in Canada to soar, by 50.6 percent to 7,821 in December, from 5,192 a year earlier.
Overall bankruptcies jumped 46.7 percent to 8,299 in December, up from 5,659 a year earlier, the federal Office of the Superintendent of Bankruptcy reported Monday.
Experts have noted the degree to which the number of bankruptcies has increased over a 12-month period is "highly unusual."
"I can't remember ever seeing an increase like that," said Douglas Hoyes, of Hoyes, Michalos & Associates, an Ontario bankruptcy trustee firm.
But this is not the end of it, rising unemployment will mean even more consumer bankruptcies in the coming months, economists have warned.
ECONOMY RECOVERY DEPEND ON U.S. BANK PLAN
Canada's Central Bank Governor Mark Carney has set the stabilization of the global financial system, especially that of the United States, as a precondition for Canada's economic recovery.
"Decisions taken in the coming weeks in the United States and in other major countries to isolate toxic assets in order to create a core of good banks will be critical," Carney said Tuesday to the House of Commons Finance Committee. "If these national and multilateral measures are not timely, bold, and well-executed, Canada's economic recovery will be both attenuated and delayed."
Carney's prediction that the Canadian economy will rebound to a robust growth of 3.8 percent in 2010, after a contraction of 1.2 percent this year, has been challenged by most economists both in this country and in the United States.
But he insisted on his rosy outlook Tuesday, saying the expected revival in Canadian business conditions will result from a range of factors, including the central bank's efforts to spur economic growth by lowering its key interest rate, the export advantage from a lower-valued Canadian currency, Ottawa's economic stimulus package and the comparative health of Canada's banks.
In the federal budget tabled last month, the government pledged a stimulus package worth 40 billion Canadian dollars over the next two years to help batter the economic downturn, mainly through government spending and tax cuts.
However, Carney tempered his relatively upbeat outlook by cautioning that all forecasts are "subject to an unusually high degree of uncertainty" now because of the speed and worldwide reach of the current economic downturn.
Canada's economic recovery could be delayed or weakened if plans by the United States and other countries plans to stabilize their financial systems do not succeed, he stressed. (1 U.S. dollar = 1.2279 Canadian dollars)