Money Flooding Out of Canada at Fastest Pace in Developed World – Ari Altstedter

Money Flooding Out of Canada at Fastest Pace in Developed World – Ari Altstedter November 2, 2015:

Declining oil prices are bringing an end to the oil boom and, with little else apparently ready to take industry’s place as an economic driver,  money is flooding out of Canada. Along with IMF projections in October that Canada’s growth would drop to 1 percent, the steepest drop of any advanced economy, this article from Bloomberg reports how Bank of America Merrill Lynch analysis shows Canada’s basic balance – “a measure of national accounts that spans everything from trade to financial market flows – swung from a surplus of 4.2 percent of gross domestic product to a deficit of 7.9 percent in the 12 months ending in June.”  This is affecting demand for the Canadian dollar and the country’s assets, mostly from Canadian investors.  While a low Canadian dollar has improved manufacturing and service exports, these remain below 2008 levels.