Vol. 36, No. 3, Fall 2001
While a slowdown in the U.S. economy was expected for 2001, the size of the downturn has been much greater than initially forecast. Moreover, the slowdown has not been limited to the United States. Lower U.S. imports have had a negative impact on growth in Canada, Mexico and some Asian countries. The Japanese economy continues to struggle while growth in many European and Latin American countries has also slowed dramatically. The end of the information technology boom, a global decline in equity markets, last year’s rise in energy prices and greater economic integration have all played a role in spreading the economic slowdown. The global slowdown is having a negative effect on Atlantic exports and the weakening in Central Canada will also moderate inter-provincial trade.