Canada column for
Sunday, Jan. 3/16
THE CANADIAN REPORT
(c) By Jim Fox
Canada’s economy
was battered in 2015, with the dollar losing 16 percent of its value against
the United States currency and the Toronto Stock Exchange (TSE) down 11
percent.
With the arrival of
the new year, Canadians face higher food and restaurant prices with the bite of
a slumping dollar.
There was no joy in
Canada’s resource rich oil patches, primarily Alberta where 63,500 jobs were
lost in the first eight months of the year while the average weekly pay fell
2.6 percent to $1,129 (Canadian).
The drop in oil and
commodity prices hit the dollar hard as it fell to 72 U.S. cents while pushing
the U.S. dollar to near $1.40 Canadian.
BMO economist Doug
Porter said the “carnage” led to the third-worst year since 1992 when the buck
fell by 9 percent.
The TSE’s composite
index ended the year at 13,009 points, compared with 14,632 a year ago and the
worst since 2011.
The dollar’s fall has
led to higher food costs since 81 percent of all vegetables and fruit consumed
in Canada are imported.
University
of Guelph’s Food Institute estimates the average Canadian household
spent an additional $325 on food in 2015 and can expect to pay about $345 more
this year.
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