The global economy is slowing rapidly as policymakers continue to grapple with an ongoing financial crisis. Nevertheless, financial markets remain volatile and it will take time for credit pressures to ease.
The Atlantic region is not immune to spillovers from these developments. Weakening U.S. and global demand will make it difficult for exporters to expand, although the rapid fall in the Canadian dollar will ease pressure on profit margins. Some major project investment activity is likely to be at least delayed in response to difficulties in project financing, while most businesses will experience tighter credit conditions. Sharply lower commodity prices may cause the viability of some mining developments to be re-evaluated and will contribute to lower government resource revenues. Atlantic consumers and businesses will trim and postpone spending in response to increased uncertainty, tighter credit, losses in wealth and energy prices that are still high historically.
This issue of Atlantic Report provides APEC's 2009 economic forecast and accompanying analysis for the four Atlantic provinces.