Canada is facing difficulties like never before
21 August, 2015
Technically speaking, Canada is in recession. This issue is debated in the media and a turn-around by the end of the year is still possible, but not probable. Canada is heavily dependent on commodities like oil, but its current low price undermine the economy for a fifth consecutive month. While the dropping Canadian dollar hints that Canadian exports may become more attractive to both US and EU businesses, the reality is different there is simply too much cheaper competition out there.
Mexico offers far cheaper options for large corporates to produce practically everything from cards to chemicals. The Mexican currency peso is devalued at almost the same rate as the Canadian dollar, making trade with Mexico even more efficient. The quality and quantity of produce is up to par which further pushes business south.
The cheap Canadian dollar is, however, stimulating the tourism sector which introduces high revenues for the locals. US citizens scored a seven-year high on the numbers of trips to Canada a staggering total of 1.9 million in June, a rise of almost 4 percent from May.
This is great news for small businesses along the US border which will be further supported from the new plan introduced by the Conservative leader Stephen Harper. The policy aims to cut down red tape and increase efficiency in this difficult time.
About Healy Consultants
For over a decade, the incorporation experts at Healy Consultants Pte Ltd., with their comprehensive list of services in Canada, have been assisting small and medium sized US and global investors to set up the optimum corporate structures in Canada. The services offered include company registration, banking solutions, accounting and tax and legal services and corporate support services.
To inquire more about Canada company setup options and schedule a conference call, email us at email@healyconsultants or call us on +65 6735 0120
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