FCC Senior Agriculture Economist J.P. Gervais discusses the current European debt crisis and its affect on Canadian agriculture.
Key Points
Investors are worried that some European countries will be unable to make their debt obligations.
Countries given emergency funds to balance their budgets commit to implementing austerity measures in return. These measures reduce a country’s economic growth.
A strong Canadian dollar often equals less European demand for our agricultural goods.
A European country defaulting on their debt could trigger a credit crisis that could reduce demand and limit growth in emerging markets for Canadian agri-food products.
The U.S. is facing some serious economic challenges – the biggest being slow economic growth.
