Trudeau seeks to ease doubts about Canadian economy
20 January 2016
- From the section US & Canada
Canadian Prime Minister Justin Trudeau tried to reassure the World Economic Forum that his country’s economy is strong, despite low oil prices.
Speaking in Davos, Switzerland, he said that the Canadian economy was “more than just natural resources”.
In recent days, the prime minister has said that the low oil prices and weak Canadian dollar were doing significant damage to the Canadian economy.
Canada’s dollar has plummeted to a 12-year low against the US dollar.
Mr Trudeau was in Switzerland promoting Canada to business leaders as a safe place for investment amid an shaky global economy.
With the devaluing currency in mind, Canada’s central bank said on Wednesday that it was leaving its interest rate unchanged at 0.5%.
Some analysts believed that the bank was going to cut the rate, which could have caused the currency to devalue further.
The rate was last changed last year, when it was lowered to try and counteract the effect of falling oil prices.
Mr Trudeau was also asked if he fears another global recession, and said that he is confident in the world’s ability to solve its problems.
Canada is the world’s 11th largest economy, based on a dominant service sector and vast oil reserves. It is also a major exporter of food and minerals.