I enjoy looking back at old news stories to compare predictions with reality. Here are some statements compared to reality.
“The lower dollar is good for Canadian manufacturers and exporters,” said Jeff Brownlee, vice president of public affairs for the Canadian Manufacturers and Exporters. “They’re making more Canadian dollars on their export sales.”
From StatsCan -Both merchandise exports and imports rose in October, with the former (exports) rising 0.1%, to $44.9 billion, and the latter up by 0.5%, to $44.8 billion.
“A lower Canadian dollar is generally good for Canada’s oil industry, says University of Alberta Richard Dixon”.
According to Rystad Energy it is costing us $21.00 US to process a barrel of oil at the tar sands then we can sell it for.
Lower loonie to boost tourism to Canada, says economist
Americans account for about 80 per cent of non-resident travel to Canada, according to Capital Economics economist David Madani recent report. “If the U.S. economy continues to improve as we expect, then that should generate a marked increase in foreigners visiting Canada,” he says.
Surly Canada is a more attractive destination with a lower loonie? Travel Leaders Group, representing 40,000 U.S. Travel Agents released their top destinations for 2015 this week. – Sorry Canada didn’t make the list.
But we can all stay at home this year.
Debbie Cabana said that prices on vacations down south are so competitive, with many costs including hotel rooms calculated in U.S. dollars, that the company has to impose the surcharge, given razor-thin profit margins of only 1 per cent.And finally the truth…
And now the real story.
Expect higher prices at the mall and the grocery store as early as spring if the Canadian dollar continues its downward spiral, industry experts warn.
Retailers will have “no choice” but to pass on to consumers the higher prices they have to pay to buy goods in U.S. currency if the dollar’s slide is sustained as expected, said Diane Brisebois, president of the Retail Council of Canada.
“Canadian retailers are paying 10 per cent more for products than they were six months ago, so it’s worrisome if it continues to drop,” she said.
The Final Word
An LCBO spokesperson said the liquor agency deals with currency fluctuations in numerous countries “all the time”, and that it’s unclear at this point how much it will impact the prices customers pay for alcohol if the dollar keeps falling.