Bank of Canada Governor Stephen Poloz said he rejects any notion that the country is too reliant on the natural resources sector, despite the skid in commodity prices that has squelched economic gains.
Mr. Poloz said the drop in prices for oil and base metals has forced companies to cut spending this year – in the oil patch, by as much as 40 per cent – but it does not mean that it was a mistake to plow long-term capital into major projects that will operate for years.
“In terms of being excessively dependent, I don’t buy that. Twenty per cent of our economy is the resource economy. That’s very important; it’s our backbone. It’s always been our history, and the rest is in some way dependent on that continuing to perform,” Mr Poloz told a business audience in Calgary, where the collapse in oil prices has led to deep cuts in spending and thousands of layoffs in the energy sector.
“We’re a highly diversified economy, and we should be thankful that we’ve got resources as part of our diversification, whereas lots of other countries don’t have that.”
but don't take my word for it:
Stephen Poloz rejects charges Canada is over-reliant on natural resources - The Globe and Mail
Mr. Poloz said the drop in prices for oil and base metals has forced companies to cut spending this year – in the oil patch, by as much as 40 per cent – but it does not mean that it was a mistake to plow long-term capital into major projects that will operate for years.
“In terms of being excessively dependent, I don’t buy that. Twenty per cent of our economy is the resource economy. That’s very important; it’s our backbone. It’s always been our history, and the rest is in some way dependent on that continuing to perform,” Mr Poloz told a business audience in Calgary, where the collapse in oil prices has led to deep cuts in spending and thousands of layoffs in the energy sector.
“We’re a highly diversified economy, and we should be thankful that we’ve got resources as part of our diversification, whereas lots of other countries don’t have that.”
but don't take my word for it:
Stephen Poloz rejects charges Canada is over-reliant on natural resources - The Globe and Mail