This piece was co-written with help from other RGE lead analysts.
We take a look at how the rest of the world is faring amid the U.S. woes.
With 75% of its exports bound for the U.S. (whose economic outlook was revised downward by the OECD), Canada seems hard pressed to avoid the effects of the likely U.S. recession. So far, though, terms of trade gains from a strong loonie have boosted domestic demand and offset rising credit costs, and the export and manufacturing slump. But its vulnerabilities have led the Bank of Canada to cut aggressively (100bps since[...]