Low Oil "Nasty Antibiotics" For Canada's Problem

[Economy 52,861]

http://www.cbc.ca/beta/news/business/canada-manufacturing-recovery-animal-spirits-1.3378218

 

Canada may have lost tones of Government Revenue and energy jobs due to low oil prices. But experts say long term this pain is actually like a nasty antibiotic that will fix problems at the source

 

First of all to stimulate economy Government has increased infrastructure spending which went neglected for 10 years. Canada is one of the few oil hit Nations that is raising spending rather than cutting

 

Secondly, because banks have less to lend to oil expansion, they are lending more to small business start ups, and more to manufacturers. A lower currency will also help manufacturing which has been shrinking since the year 2000 and hurting Central Canada (Ontario & Quebec)

 

While Canada may be suffering from low oil prices right now, at the fundamental level there is a rebalancing going on that long term will make Canada stronger. Many other Oil Exporters however instead are going into full blown crisis, something Canada has avoided so far.