The American and Canadian economies are very similar. Inflation is decelerating, employment remains robust but one is growing by 4.9 per cent while the other is flirting with a recession.U.S. President Joe Biden hands out candy to a child dressed up for Halloween on the South Lawn of the White House on Oct. 30. One economist says that government spending has given the U.S. economy a 'sugar rush.' In a lot of ways, the U.S. and Canadian economies are similar.
Canadians have higher debt loads. Those debt loads renew more quickly in Canada. That means higher borrowing costs bite harder, faster here.Bank of Canada governor won't say when interest rates will drop, but insists it won't take a recession A customer investigates a vehicle at a Cadillac dealership in Lincolnwood, Ill., on January 31, 2023.
"This fiscal strength will wear off in the U.S." he said. "It's actually going to become a bit of a drag over the next year, instead of adding to growth."