Weak Canadian dollar not so bad for domestic retailers, tourism: economists - InfoNews

Current Conditions

Clear
-5.1°C

Weak Canadian dollar not so bad for domestic retailers, tourism: economists

A Canadian dollar, or loonie, sits on top of its American counterpart in Toronto on Sept. 20, 2007. THE CANADIAN PRESS/Adrian Wyld
January 16, 2014 - 10:27 AM

VANCOUVER - Canada's top economists say they expect the Canadian dollar to remain weak and perhaps reach as low as 90 cents US by the end of the year, but that's not necessarily a bad thing.

The loonie declined 6.6 per cent last year and has dropped another three per cent in just the first two weeks of 2014.

On Thursday, an expert panel told a Vancouver Board of Trade forum that a devalued loonie could mean less foreign investment and lower commodity prices.

But they also say it could lead to a stronger U.S. and global economy, which could benefit Canada's export industries, domestic retailers, and tourism.

The panel says much of Canada's economic prospects depend on getting Alberta oil to market, and the sooner British Columbia can finalize projects such as the Northern Gateway pipeline, the better.

The economists say demand for clean energy is high, so they expect the liquefied natural gas projects touted by B.C. Premier Christy Clark will go ahead, but they also warn against being too optimistic about gas prices due to competition from the U.S. and Australia.

News from © The Canadian Press, 2014
The Canadian Press

  • Popular kelowna News
  • Comments
  • Pier 1 closing all of its stores in Canada
    Pier 1 Imports, Inc. announced today that it has entered into bankruptcy protection and is pursuing a sale. The retailer  commenced voluntary Chapter 11 proceedings in the U.S. Bankrupt
  • Vernon's Atlantis waterpark gets a new name
    A popular Vernon waterpark is starting its transformation with a new name. Formerly known as Atlantis Waterslides, the waterpark, located north of the city along Highway 97, has been renamed
  • Killing of 7-year-old girl stokes anger in Mexico
    MEXICO CITY - The killing of a 7-year-old girl on the southern outskirts of Mexico City has stoked rising anger over brutal slayings of women, including one found stabbed to death and skinned earl
  • Mammoth's tooth found in Williams Lake and preserved for decades by B.C. family
    What was once part of a mammoth-sized smile now is a very old conversation starter in Bryan Johnson's Vancouver home. Johnson's stepfather found a mammoth tooth in a creek at the sou
  • Vernon family captures mesmerizing melting ice
    A Vernon family was on their way home from Kelowna when they made a pit stop after noticing a beautiful scene along Wood Lake. Matthew Royal and his daughters noticed how “cool”
View Site in: Desktop | Mobile