Macroeconomic Performance and Strategic Decisions.

Prologue

In this report we will look to provide a critical evaluation of three different types of economies over the period extending from 2007 up until the end of 2009. These being a large industrial economy within one of the triad markets, a small open economy and finally a non-triad emerging economy.

Introduction Canada

Canada is considered to be a large industrial economy with memberships in the OECD, WTO and the G7 organisations. It is a country with large natural resources and a stable political environment benefiting from an enviable geographical location for trade.

1. A summary of macroeconomic performance over the last three years

Canada’s economy has experienced mixed results over the period of analysis; its general performance in comparison to the other G7 nations has been arguably one of the best, [Fin.gv.ca (2011)]. During 2007 Canada demonstrated a solid economic performance and maintained strong growth patterns exhibited in its economic indicators since 1993 [TWB (2011)]. [Appendix Canada]

These positive economic trends continued into 2008 with strong performance indicators well into the early part of 2008, [IMF (2011)] unfortunately for Canada as the rest of the world, it succumbed to the global financial crisis [OECD (2011)].The effect of which had a significant effect on Canada’s economy and drove it into a severe economic recession, [Economy watch (2011)].

It is not fully evident in the data and indicators published in 2008 how bad and deep the recession was at the time, [IMF (2011)]. The economic indicators published by [OECD (2011) TWB (2011)] for 2008 demonstrated a down-turn but not the whole extent of the impact. [Appendix Canada table 1]

The effects of the global financial crisis on Canada’s economy were dramatic and this became evident in the published data of 2009 with nearly all economic indicators going in a negative direction [TWB (2011)]. [Appendix Canada table 1 and Canada graphs] These dramatic changes in...