BOC Governor Says Economy is Diversified

The governor of the Bank of Canada is rejecting the notion that the country is excessively dependent on its natural resources sector, arguing that the economy remains highly diversified.

Stephen Poloz made the remarks Monday during a question-and-answer period that followed his speech in Calgary — in a province where the energy sector has been hit hard by the plunge in oil prices.

“You gotta believe it’s better to have some of this stuff than not to have that stuff,” Poloz said of commodities in response to a question from the audience at the event hosted by Calgary Economic Development, a non-profit group that promotes growth in the city.

Poloz described natural resources as Canada’s “backbone” because they represent about 20 per cent of the economy, adding that other sectors remain, in some ways, dependent on it to perform well.

Meanwhile, Poloz said he doesn’t “fret about it.”

“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,” he added.

Via Canadian Business

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza